The chances that the market is entering a “crypto winter” are slim, according to Coinbase’s head Brian Armstrong. During Coinbase’s fourth-quarter earnings call Armstrong doubted that cryptocurrencies are about to drop significantly in prices as a trend of “going through summers and winters” is a thing of the past.
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“I think early on in crypto’s history, there was this trend of going through summers and winters. And the thing is crypto is kind of working now,” Armstrong said.
He noted though that the exchange basically has no idea what is going to happen in the next quarter or the next couple of quarters at any moment in history with crypto. Armstrong pointed out that there is almost no way to predict how the market will behave, citing the inability to predict what the S&P 500 is going to be next quarter.
As iHodl earlier reported, analysts at investment bank UBS believe that bitcoin’s price drop may be the beginning of new crypto winter. The experts warned the recovery from a new crisis might take years should the market continue to decline.
The group of analysts led by James Malcolm said that the policy driven by the Federal Reserve in 2022 will likely dent the appeal of cryptocurrencies, including bitcoin (EXANTE: Bitcoin). The analysts claim that rising interest rates are “putting paid” to arguments that the largest cryptocurrency by market capitalization is a good way to store value and hedge inflation risks.
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