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Coinbase Strategist Says Bitcoin's Selloff Is Actually a Good Thing

MarketDash Editorial Team
19 days ago
Bitcoin's recent drop has investors nervous, but Coinbase's institutional strategy chief argues the pullback is following a familiar playbook—and creating a buying opportunity as fundamentals strengthen.

If you're feeling queasy about Bitcoin's (BTC) recent slide, Coinbase's institutional strategy chief has a message: relax, this is how it's supposed to work.

John D'Agostino, Head of Institutional Strategy at Coinbase (COIN), told CNBC on Monday that Bitcoin's current pullback is actually following a familiar and healthy pattern. Historically, Bitcoin has endured 70-80% drawdowns on its way to multi-year rallies. This correction? Pretty tame by comparison.

What's more, the asset is becoming mathematically less volatile as the market deepens and institutional participation grows, even if sentiment feels "brutal" right now.

Nothing's Actually Broken

D'Agostino emphasized that fundamentals haven't deteriorated since September's bullish environment. In fact, they've gotten stronger:

  • A Eurozone central bank bought Bitcoin
  • Major banks launched new stablecoins
  • Harvard's endowment increased Bitcoin exposure
  • Multiple new ETFs launched, including for Solana

When fundamentals improve while prices drop, that's typically called a buying opportunity. "If you like this asset, you should like it at a discount," D'Agostino said. Short-term traders can wait for cleaner technicals, but structurally, nothing has changed.

The Stablecoin Question

D'Agostino also pushed back on Cathie Wood's suggestion that stablecoins could displace Bitcoin in payments. He doesn't see long-term Bitcoin holders rotating into stablecoins—they're different products serving different purposes.

Meanwhile, pseudonymous analyst Bitcoiner pointed out an intriguing data point: Binance's BTC-to-stablecoin reserve ratio just hit its lowest level ever. That matters because historically, when this ratio drops sharply, it signals maximum sidelined buying power. Low BTC reserves relative to stablecoins have previously marked the setup for powerful Bitcoin uptrends.

So yes, the selloff stings. But if history rhymes, this might be exactly the kind of pain that precedes the next rally.

Back to News

Coinbase Strategist Says Bitcoin's Selloff Is Actually a Good Thing

MarketDash Editorial Team
19 days ago
Bitcoin's recent drop has investors nervous, but Coinbase's institutional strategy chief argues the pullback is following a familiar playbook—and creating a buying opportunity as fundamentals strengthen.

If you're feeling queasy about Bitcoin's (BTC) recent slide, Coinbase's institutional strategy chief has a message: relax, this is how it's supposed to work.

John D'Agostino, Head of Institutional Strategy at Coinbase (COIN), told CNBC on Monday that Bitcoin's current pullback is actually following a familiar and healthy pattern. Historically, Bitcoin has endured 70-80% drawdowns on its way to multi-year rallies. This correction? Pretty tame by comparison.

What's more, the asset is becoming mathematically less volatile as the market deepens and institutional participation grows, even if sentiment feels "brutal" right now.

Nothing's Actually Broken

D'Agostino emphasized that fundamentals haven't deteriorated since September's bullish environment. In fact, they've gotten stronger:

  • A Eurozone central bank bought Bitcoin
  • Major banks launched new stablecoins
  • Harvard's endowment increased Bitcoin exposure
  • Multiple new ETFs launched, including for Solana

When fundamentals improve while prices drop, that's typically called a buying opportunity. "If you like this asset, you should like it at a discount," D'Agostino said. Short-term traders can wait for cleaner technicals, but structurally, nothing has changed.

The Stablecoin Question

D'Agostino also pushed back on Cathie Wood's suggestion that stablecoins could displace Bitcoin in payments. He doesn't see long-term Bitcoin holders rotating into stablecoins—they're different products serving different purposes.

Meanwhile, pseudonymous analyst Bitcoiner pointed out an intriguing data point: Binance's BTC-to-stablecoin reserve ratio just hit its lowest level ever. That matters because historically, when this ratio drops sharply, it signals maximum sidelined buying power. Low BTC reserves relative to stablecoins have previously marked the setup for powerful Bitcoin uptrends.

So yes, the selloff stings. But if history rhymes, this might be exactly the kind of pain that precedes the next rally.