Coinbase layoffs signal crypto market cycle bottom
The hosts suggested that Coinbase's 14% workforce reduction, paired with massive venture capital raises, serves as a historical bottom signal for the crypto market.
The argument
Coinbase has historically laid off staff near cyclical bottoms, such as in 2018 and 2022. Meanwhile, venture capital firms have raised over $3.2 billion to deploy into new financial infrastructure, indicating robust long-term industry health.
The thesis, stress-tested
✓ What validates it
- ✓Crypto asset prices stabilize or rally in the quarters following the layoffs
- ✓Venture funds actively deploy capital into newly launched infrastructure startups
▸ Risks discussed
- ▸Layoffs reflect near-term operational and revenue pressures for Coinbase
- ▸VC capital deployment may take years to positively impact liquid token markets
Hear it yourself
"Nasdaq gained 24% over that same same time. And so, you know, these are indices. That's crazy. Can you just pause Mhmm. Over, like, what? Almost forty days. Not not even forty days. Nasdaq is up 25%? Yeah. 26% from peak to trough, trough to peak. Nice. That's just gnarly. That's gnarly. Like, you really have to zoom out pretty far to put it in, like, perspective. But the the Iran War, it is up double that than the Iran war took it down, if that makes sense. Okay. In terms of size. Are there sectors that are winning? I remember we were talking about the SaaS pocalypse."
06:15
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