Enthusiasm for cryptocurrencies has not waned despite current prices being far from record highs, according to Coinbase Chief Financial Officer Alesia Haas.
"I don't think we've seen any change in interest in the overall crypto space," Haas told Yahoo! Fiance, explaining that those invested in cryptocurrencies are generally incredibly long-term focused and “think about how this technology changes the way that we interact with financial assets” as well as how this technology innovates and changes the future of the web.
Bitcoin, the benchmark cryptocurrency, has been “swept into the broader risk-off environment that has gripped risky assets in the tech space this year,” according to the article.
Bitcoin prices hit a record high on Nov. 9 of $69,000, but have dropped 38% to about $43,000, with prices hitting a low of $35,000 in late January, due to fears around interest rate hikes.
Other cryptocurrencies have faced similar volatility, with Ethereum down 35% from November 2021 highs and Shiba Inu has dropped by more than half since its peak in October, 2021.
This is a response to overall market conditions and concerns, Haas explained. Investors are wanting less risk and are moving their money to asset classes they view as safer.
“Crypto in general is viewed as a more high risk growth asset class," Haas explained.
Companies that also have exposure to crypto space are also facing sell-off. For example, according to the article, Coinbase and Robinhood shares have both taken a dip.
Haas joins a league of other experts who urge patience for cryptocurrency prices.
MicroStrategy founder Michael Saylor said on Yahoo Finance Live that he is looking 10 years down the road. He explained that many people buy bitcoin because they want an asset that might have value in 10 years.
“The truth is there is no security trading on the Nasdaq of the New York Stock Exchange right now that you can understand 100 years from now,” he said.