Coinbase CEO says Bitcoin entering bull cycle above $72,000

Bitcoin crossed $72,000 on Aug. 20 as Coinbase CEO Brian Armstrong said the market may be entering its next bull cycle ahead of a key U.S. Senate vote on crypto legislation.

"I think there's a good chance we're on the cusp of the next bull market for spot trading in crypto," Armstrong said in a CNBC interview Thursday.

Armstrong pointed to the length of previous bear markets, which typically lasted around 370 to 380 days, and said the current downturn is approaching that duration. He also cited the upcoming Sept. 15 vote on the Digital Asset Market Clarity Act and historically stronger Bitcoin performance in October, November and December following halving cycles.

The Senate vote on the CLARITY Act, which needs 60 votes to pass, could reshape the regulatory landscape for digital assets in the U.S. Armstrong said he expects the bill to clear that threshold, though ethics provisions tied to President Donald Trump's crypto investments remain one of the more contentious issues.

Coinbase shares rose nearly 8 percent in morning trade, expected to close at a one-month high. Retail sentiment on Stocktwits flipped to bullish from bearish over the past day, with chatter rising to high from normal levels. COIN stock has fallen more than 25 percent this year, while Bitcoin has dipped around 18 percent.

Coinbase Diversifies Beyond Spot Bitcoin Trading

Armstrong said Coinbase's revenue is now much less dependent on spot Bitcoin trading, with only about 12 percent of revenue coming from that segment. He pointed to crypto derivatives, prediction markets, stablecoin payments and tokenization of real-world assets as growing businesses while spot trading has been weaker.

"The big one that's on the horizon is what we call agentic finance or AIFI," he said, describing the market as being in its early stages but potentially having the biggest total addressable market. Armstrong expects there could eventually be more AI agents than humans, with those agents needing an economy to conduct transactions.

Tokenized Equities Launch From Abu Dhabi

Armstrong also highlighted Coinbase's expansion into tokenized equities, saying the company has so far only been able to offer the product offshore. "We're launching our tokenized equities product next week out of Abu Dhabi for non-U.S.," he said.

He added that the U.S. could eventually move in the same direction, with the SEC potentially creating an innovation exemption that would allow crypto securities and tokenized equities to trade domestically.

The combination of a potential bull cycle, regulatory clarity from the CLARITY Act, and Coinbase's diversification into derivatives, stablecoins and tokenized assets could position the exchange for revenue growth beyond spot trading. The Sept. 15 Senate vote will be a key test of whether the U.S. can deliver the regulatory framework the industry has sought.

This article is for informational purposes only and does not constitute investment advice.