Coinbase CEO Issues Stark 50% Crash Prediction After Meltdown of Bitcoin, Ethereum and Crypto Prices
Bitcoin
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The bitcoin price has fallen to around $17,000 per bitcoin, down around 75% from a peak of nearly $70,000 in 2021, with the ethereum price seeing a similar decline and one of the biggest crypto bulls making a surprise price prediction.
Now the CEO of bitcoin, ethereum and crypto exchange Coinbase, Brian Armstrong, has warned that “with everything coming down,” the company expects revenues to crash by more than 50% in 2022 (even after the world’s largest asset manager predicted “the next generation of markets “).
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Coinbase CEO Brian Armstrong has warned that the company will post a 50% revenue decline due to … [+]
“Last year in 2021 we had about $7 billion in revenue and about $4 billion in positive [earnings before interest, taxes, depreciation and amortization] and this year with everything coming down, it looks like, you know, about half of that or less,” Armstrong said during a Bloomberg interview.
Coinbase’s stock has plunged along with the price of bitcoin, ethereum and other cryptocurrencies this year, wiping out nearly 90% of its value after the company went public in April 2021.
In May of this year, Armstrong was forced to issue a statement declares Coinbase has “no risk of bankruptcy” after the company’s quarterly report added a risk disclosure that warned if the company were to file for bankruptcy, the court could treat the customer’s bitcoin, ethereum and other cryptocurrencies as Coinbase’s assets.
The crypto price crisis has been exacerbated by several companies going bankrupt this year, culminating in the shock collapse of the major exchange FTX last month – which Armstrong labeled a “massive fraud”.
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The Bitcoin price has collapsed by around 75% since the end of 2021, dragging down the Ethereum price and … [+]
“It looks like that [FTX] took client funds from their exchange and actually commingled them or moved them into their hedge funds and then ended up in a very underwater position,” Armstrong said. “And that was, I think, against their terms of service and against the law.”
Some fear that the bitcoin price could fall much lower next year, potentially pushing more companies over the edge.
