Bitcoin is rising due to liquidity recovery and institutional demand, not geopolitics, Coinbase executive says

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Bitcoin's price gains are due to recovering market flows and increasing institutional demand. Coinbase's John D'Agostino clarified that Bitcoin's recent rally is not directly related to events in Venezuela.

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Bitcoin's recent rally has been driven by recovering market equity and strong institutional demand rather than geopolitical events like the US intervention in Venezuela or the arrest of Nicolas Maduro, said John D'Agostino, head of institutional strategy at Coinbase.

“This is a huge geopolitical event. That narrative certainly holds up as a long-term thesis, that evidence of Bitcoin as a temporary currency to replace an unstable currency. That's good. I also hear the argument that maybe we're going to have low oil prices. Historically, the Fed eases in low oil price situations,” D'Agostino's today on S.C.C.C.C.

“However, it's usually a demand issue versus a supply issue. I have to be honest. I don't see any direct evidence that what's happening in Venezuela is directly applicable,” he added.

D'Agostino cites the rebuilding of market makers' position as a key reason for Bitcoin's rise, along with increased retail sentiment, strong institutional activity, and Bitcoin's decades-long performance as a store of value.

According to him, Bitcoin has gained more than 11,000% over the past decade, outpacing gold's 260% and the S&P 500's roughly 300%.

We are seeing a gradual rebuild from this liquidity event we did on October 10th. As market makers become more comfortable with their risk inputs, they increase the risk of return to the market.

“We're seeing retail sentiment get what we know through institutions. So retail sentiment [is] Getting to the institutional movement.”

On institutional adoption, D'Agostino said that despite Bitcoin's 6 percent decline in 2025, no major institutions working on crypto strategies are holding back.

“I don't know of a large company that doesn't have an AI and blockchain strategy, or at least thinking about one,” he said.

He also pointed out that regulatory progress has accelerated rather than delayed institutional timelines.

D'Agostino also addressed Bitcoin's volatility concerns, noting that while the asset remains volatile, it has become less volatile over time.

He pointed to expanding use cases, including new regulations that allow bitcoin as mortgage collateral and partnerships that allow spending across thousands of vendors.

Regarding the ongoing public skepticism surrounding crypto, D'Agostino said senior institutional leaders do not openly doubt Bitcoin's viability. Few, if any, partner-level executives say Bitcoin is going to zero right now.

“Now if you think like that on a partner level, shut your mouth, because it's a little embarrassing.”