Bitcoin's (CRYPTO: BTC) latest downturn may feel painful, but Coinbase's (NASDAQ:COIN) Head of Institutional Strategy, John D'Agostino, says the market is simply repeating a familiar, and ultimately healthy, pattern.
What Happened: Speaking with CNBC on Monday, D'Agostino noted that Bitcoin has historically endured 70%–80% drawdowns on the path to multi-year rallies.
This pullback is mild by comparison and comes as Bitcoin becomes mathematically less volatile thanks to a deeper market and rising institutional participation, even if sentiment currently feels "brutal."
He stressed that nothing has fundamentally deteriorated since September's bullish environment. On the contrary, major tailwinds have strengthened:
- A Eurozone central bank bought Bitcoin
- Major banks launched new stablecoins
- Harvard's endowment increased Bitcoin exposure
- Multiple new ETFs launched, including for Solana
With fundamentals improving while price declines, he argues long-term investors should embrace the reset: "If you like this asset, you should like it at a discount."
Short-term traders can wait for cleaner technicals, he said, but structurally, nothing has changed.
Also Read: Bitcoin Briefly Crashes Below $90,000 As Ethereum, XRP, Dogecoin Drop Causes $1B In Liquidations
Why It Matters: D'Agostino also pushed back on Cathie Wood's view that stablecoins could displace Bitcoin in payments. He doesn't see long-term Bitcoin holders rotating into stablecoins.
Pseudonymous analyst Bitcoiner highlighted that when Binance's BTC-to-stablecoin reserve ratio drops sharply, it has historically preceded major rallies.
Low BTC reserves relative to stablecoins signal maximum sidelined buying power, and the ratio is now at its lowest level ever, a setup that previously marked powerful Bitcoin uptrends.
Read Next:
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
