Brian Armstrong struck an optimistic tone on retail participation in the crypto market, saying recent data shows individual investors remain resilient and continue accumulating despite ongoing volatility and price declines.
The Coinbase CEO says even as markets swung and prices dipped, many everyday users didn’t rush for the exits. Instead, they leaned in and bought more Bitcoin and Ethereum. The access buy has increased retail holdings in actual coin amounts on Coinbase.
The trend runs counter to the broader market, which has seen a bloodbath in the sector, with industry heavyweights Bitcoin and Ethereum touching fresh lows since 2024.
Interestingly, the retail participation also comes right after Coinbase reported a disappointing result for Q4 2025, making Armstrong’s statement more like a damage control to the already dampened sentiments.
Retail investors hold crypto positions despite volatility: Armstrong
Armstrong pointed out that by February, most customers held the same or more crypto than they did in December. The number suggests people aren’t just trading headlines or reacting emotionally to short-term volatility.
A lot of people seem to be thinking long-term and seeing market drops as chances instead of warning signs.
In a market that is often full of fear and big sell-offs, the data shows that retail investors are being patient and, in many cases, quietly building their positions for the long term.
Crypto market slump continues as global uncertainty mounts
Crypto markets took a noticeable hit over the past day, with selling picking up across the board. Bitcoin slipped 2.56 percent to $68,467, while Ethereum fell more sharply, dropping 6 percent to $1,959.
The weakness wasn’t limited to the two largest coins. XRP lost just over 6 percent, BNB fell 3.54 percent, and Solana declined 4.46%. Dogecoin saw the steepest drop, tumbling more than 12 percent to $0.10.
Behind the pullback is a mix of caution and timing. With expectations growing that U.S. interest rates could stay higher for longer, investors appear to be stepping back from riskier assets like crypto.
Others may simply be cashing in after recent gains. Add in ongoing global economic uncertainty and regulatory concerns, and the mood has clearly shifted toward a more careful, wait-and-see approach.
Coinbase Q4 results disappoint market
The retail participation comes after Coinbase has previously reported below expectations results as weaker crypto prices and softer trading activity weighed on its performance.
The company posted $1.78 billion in revenue, below analysts’ expectations of $1.83 billion, as Coinheadlines reported earlier.
The shortfall was largely driven by lower transaction volumes. Heightened market volatility and reduced participation from investors led to fewer trades on the platform, hurting one of Coinbase’s main sources of revenue.
Now with the market conditions continuing to hurt risk appetite, the market focus has shifted tremendously towards the measures taken by various platforms to safeguard profit margins.