Coinbase CEO Sees End of Crypto Bear Market on Horizon

Coinbase CEO Brian Armstrong believes that the crypto bear market is coming to an end. He points out that the current downturn has lasted for 10 months, which is roughly as long as previous crypto bear markets have endured.

Armstrong also expects a positive impact from the Senate's upcoming vote on the Clarity Act, scheduled for September 15th. The bill aims to define the rules of competition in the industry, and its passage could be a tailwind for exiting the bear market.

Historically, Bitcoin has performed well during the fourth quarter, with a median return of 47.7%. Ethereum also tends to do well in this period, with a median gain of 22.5%.

Armstrong's prediction is more likely to prove true than false, but he warns against trying to time the market. Prediction markets imply that the Clarity Act's chances of passing are about 18% as of August 24th. The Securities and Exchange Commission has proposed a tailored offering framework called Regulation Crypto Assets, and the Commodity Futures Trading Commission is also working on a crypto market-structure regime.