Coinbase CEO Brian Armstrong stated that retail traders on the exchange took advantage of the cryptocurrency market downturn in February 2026 to increase their holdings in Bitcoin and Ethereum.
This is reported by Finway
Armstrong’s Statement: Coinbase Traders Increased Crypto Assets
According to Armstrong, during the recent market downturn, retail users of Coinbase demonstrated resilience and actively purchased cryptocurrencies, particularly Bitcoin and Ethereum. He emphasized that the majority of the exchange’s clients have “diamond hands,” meaning they hold onto their assets even during periods of high volatility.
“Retail users on Coinbase have been very resilient during these market conditions, according to our data: – They’ve been buying the dip – we’ve seen a native unit increase for retail users across BTC and ETH – They have diamond hands – vast majority of customers had native unit…”
The term “diamond hands” is used to describe investors who do not sell their assets during market fluctuations. Armstrong added that in February, the natural balance of portfolios for retail traders on Coinbase remained at or above the levels of December 2025, indicating a retention and even an increase in investments in crypto assets.
Do the Data Support This Trend?
At the same time, Armstrong did not provide specific metrics to back up his claims. Coinbase does not publish open Proof of Reserves reports and only reports to the U.S. Securities and Exchange Commission (SEC).
The increase in the volume of crypto assets deposited on centralized exchanges (CEX) is often viewed by analysts as a potential intent to sell rather than accumulate. This trend is observed not only on Coinbase but also on other platforms. Following the market drop from January 12 to 15, 2026, when Bitcoin fell to $97,000, the volume of the coin deposited on exchanges increased alongside the subsequent price decline.
Additionally, some experts point to the Bitcoin premium indicator on Coinbase, which reflects the price difference of Bitcoin on this platform compared to Binance. A value above zero for this indicator indicates increased demand in the U.S. and aggressive buying. However, in January and February, this premium exceeded zero only three times, which does not support the notion of mass accumulation of the asset by Coinbase users.
Comments also noted that Armstrong himself sold shares of Coinbase during the market downturn, which is inconsistent with the “buy the dip” approach.
Recall that for the fourth quarter of 2025, Coinbase reported a loss of $667 million.