“We will’t catch a break,” stated David Duong, Head of International Analysis, Coinbase Institutional, as he mentioned the present state of the crypto market, institutional adoption and Euro-Stabelcoins.
“We noticed ETF outflows in December, and a giant a part of that needed to do with tax loss harvesting and different issues. I assumed that we might see a few of that restoration,” stated Duong. “Proper now, I’d say markets are sadly pinned by technical components. And it’s the problem for lots of people.”
“I’m nonetheless cautiously optimistic for the primary half of 2026. I don’t have a powerful view on the place I see crypto going within the second half of the yr. And there are a number of causes for that. I believe that there are particular issues proper now that I simply can’t worth in. What may occur with midterms within the US, for instance? Or what occurs with the market construction invoice? I believe that progress on that might nonetheless be significant. So I’m watching to see whether or not that may very well be a possible catalyst for us into the second half of the yr.”
David Duong, Head of International Analysis, Coinbase Institutional stated that he’s optimistic that the invoice will move in 2026! “I believe that we’ve already gotten stablecoin oversight. Market construction readability goes to emerge too.” #clarityact
— Akriti Seth (@AkritiSethN) February 2, 2026
“It’s going to be a ladder and that’s going to be very useful for crypto. And so I see that taking place. I believe the liquidity state of affairs is exhibiting indicators (we produce our personal customized M2 cash provide index) that the best regression tends to be a lag round 110 days. We’re at an upward uptick for that. I believe that these issues undoubtedly recommend to me that crypto ought to be doing higher within the Q1 and probably within the Q2 as effectively.”
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On Euro-Stablecoins
“Definitely we’ll see a diversification of stablecoins into different currencies. We’re already seeing it. I believe that there’s bulletins on our potential Renminbi stablecoin (RMB) and a possible Japanese yen stablecoin. And we do have Euro stablecoins already, like, EURC, for instance, already exists.”
“It’s actually simply the traction round it. I believe that there’s a number of geopolitical financial components that fall into this when individuals are enthusiastic about it, as a result of sometimes, the explanation why the greenback nonetheless represents like 99% of all stablecoins out there’s as a result of the greenback stays the reserve foreign money of the world.”
And also you talked about de-dollarization earlier. That’s in all probability not going to final without end, however we don’t understand how lengthy it’s going to final. It may nonetheless probably be generations lengthy. And once more, that has been accelerated in 2025. However for essentially the most half, folks don’t know what the choice to the greenback can be.
“China clearly would love that to be the Renminbi stablecoin (RMB), but it surely’s a present account surplus nation. And usually, what we’ve seen is that it’s essential to be a present account deficit nation so as to have the ability to produce a reserve foreign money just like the greenback, for instance. So there are challenges on what’s occurring in Europe.”
“Europe remains to be going by a really troublesome troublesome fiscal state of affairs. I imply, it’s not distinctive to Europe. It’s occurring globally. Numerous international locations are going by it. Notably, it’s been Japan over the past week that has grabbed the headlines. However we will’t overlook that France is coping with, I consider, 150% of GDP ranges. I imply, these are issues that had been a fear once we had the disaster again in 2012, for instance.”
“So, I believe that that is form of the obstacles on which the euro experiment. And I nonetheless say it’s in that part the place regardless that it’s been round for a really very long time, they’re attempting to determine it out as a result of we don’t have euro bonds like in a unified eurozone form of manner. And there’s a motive for that. There’s nonetheless insurance policies of those particular person international locations. So I believe that these are the issues that make it troublesome. Whereas with the greenback, effectively, we’ve got an yield curve.”
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“Institutional adoption has undoubtedly gained momentum, and it’s been doing so for years”
“I work for the institutional aspect of Coinbase. So I’ve gotten a first-hand view of this stuff.”
“I’ve been with Coinbase for the higher a part of 4 years now. And over that point, I can see the incremental modifications which were occurring with establishments, not simply with the entry, however with their participation in these markets, it’s grown very, very sharply. And this is the reason I at all times felt very assured about this. Anecdotally, I’ll let you know that I keep in mind when 2022 occurred and we’re getting a number of challenges. I’m not going to undergo all of them. I’m certain you keep in mind as effectively. However I’d have associates, I used to work in TradFi, who would attain out to me and be like, are you doing okay? I used to be like, sure, I’m wonderful. I truly, if something, was very assured that issues had been going to be wonderful on the finish.”
2025 undoubtedly marked a really large breakthrough yr for institutional entry. 2026 will very seemingly see the following part of that institutional adoption being constructed.
“The investor base itself has additionally diversified. 2024, 2025, we noticed spot ETFs. And I believe these are undoubtedly creating these sturdy, regulated, acquainted on-ramp for traders.”
“We additionally received digital asset treasuries. And I believe folks are actually extra shy about speaking about them, to be trustworthy. However I nonetheless assume they emerged as an essential company stability sheet car.”
“We’re seeing the tokenization of real-world property. Stablecoins are actually penetrating the core monetary workflows. Folks are actually not simply utilizing stablecoins to commerce with, however individuals are utilizing it for payrolls. Individuals are utilizing it for cross-border funds. So that is the inspiration that’s going to help the expansion and infrastructure of crypto fee rail in 2026.”
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Key Takeaways
In an
unique chat with 99Bitcoins.com, David Duong, Head of International Analysis, Coinbase Institutional stated that he’s optimistic that the CLARITY invoice will move in 2026!
Importantly, the market needs the CLARITY Act to move as a result of it ends the regulation by enforcement period.
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