Brian Armstrong, the chief executive of Coinbase, said on CNBC on Thursday that bitcoin has bottomed for the current cycle and called $400,000 by 2030 a "reasonable target." Bitcoin was recently trading close to $77,318, against an all-time high of $126,080 set in October, Bitcoin Magazine reported. Armstrong also said he was confident the Senate would pass the long-awaited crypto Clarity Act next week.
Why does he think the bottom is in? Crypto "typically goes through these four-year-ish cycles" of run-up, euphoria and a down period, Armstrong said. "Most of the down periods last about a year, and we've actually just come across the one-year mark for this down period, so I personally believe that the bottom is in," he said. "I think the next year or two is going to be good for Bitcoin," he said.
How has the market moved? Bitcoin, which Bitcoin Magazine reported traded sluggishly through June and July, began surging in August on positive regulatory news and is up more than 20% over 30 days. At Coinbase, the downturn has brought a 14% staff cut and a second-quarter earnings miss as trading slowed, Decrypt reported. Reaching $400,000 would mean a fivefold rise in a little over three years.
What did he say about the Clarity Act? The bill, which Bitcoin Magazine reported sets out a framework dividing oversight between regulators, would distinguish which digital assets are securities, commodities or stablecoins. From everyone he has spoken to in the Senate, which votes on September 15, the bill is "ready to get a yes vote," Armstrong said, adding that law enforcement groups, many banks and crypto companies are on board, Decrypt reported. Objections Coinbase raised previously have been resolved, he said, leaving ethics rules covering the president's family crypto ventures as the remaining sticking point. The White House has offered a provision he called "unprecedented" for a sitting president, while Democrats want divestiture.
What happens after the vote? Failure would not much matter, he said, because the SEC and CFTC have said they are ready to publish rulemaking and innovation exemptions under existing authority, and he expects clarity within a month either way, Decrypt reported. He cited last year's Genius Act, after which more than 150 large companies integrated stablecoins within three months. Passage would be "a big milestone certainly to unlock institutional capital" and would bring tokenized equities and perpetual futures to U.S. customers, he said.
Figures referenced: Brian Armstrong. — JudgeMarket.
