The Coinbase Index is basically the Dow of crypto world that tracks four of the biggest currencies (Bitcoin, Ethereum, Litecoin & Bitcoin Cash) that trade on their platform. In a recent interview to CNBC, Chairman & COO of Coinbase, Asiff Hijri, announced a new venture fund for the crypto platform.
When asked about the current situation of crypto market & falling Bitcoin prices because of the coming tax fillings, he said, “I’ve certainly had some clients for sure who contacted us to do large selling because of tax. That’s absolutely going on. Is it the main cause of what’s happening? I’m not sure. I think there’re potentially other causes too. I personally get comfortable with the fact that this correction has happened four times in the past. So if you look back at the history of Bitcoin, which is the longest running asset, there’s been four times where it’s been corrected by 50% or more & each time there’s been six, nine or three years between that and when it got back to the peak. So, we’ve seen this before and i’m not surprised by that.”
“I do think that active traders chase volatility and in the past, they chased asset classes. It went from equity to options to futures to now, crypto. I still think that crypto is the most volatile asset class out there at the moment and if you’re an active trader. that’s where you’re gonna be. But there’s another big trend that’s coming which is, its maturing as an asset class and now you’re seeing investors come into crypto and you’ll see more investors and institutions coming into crypto.” He added when asked if he thinks that crypto investors & traders are the traders who also like to trade stocks in the volatile environment?