Coinbase: Retail ’Diamond Hands’ Accumulate BTC & ETH as Armstrong’s Insider Sales Draw Scrutiny
Coinbase reports strong retail accumulation of Bitcoin (BTC) and Ethereum (ETH) during February’s pullback, with many users holding equal or greater native units than in December 2025. Bitcoin traded near $68,500 and Ether around $2,000 while retail buy-the-dip activity increased on the platform. Coinbase says steady spot buying by retail users may help offset derivatives-driven volatility and noted renewed platform activity as trading in BTC and ETH rose, supporting a jump in COIN shares. The disclosures coincided with renewed scrutiny of CEO Brian Armstrong’s personal share sales — filings show he executed large disposals under a 10b5-1 plan (reports cite roughly $101M sold around recent lows in one account and broader reports of $550M+ sold between April 2025 and Jan 2026) — which analysts say complicate messaging about retail confidence. Coinbase also faces ongoing regulatory and product-expansion challenges. Key takeaways for traders: persistent retail accumulation suggests an underlying demand floor for BTC and ETH that may reduce downside if macro conditions stabilize; however, large insider stock sales and regulatory risk are mixed signals and argue for cautious position sizing and risk management.
Bullish
The net effect on BTC and ETH price action is likely bullish. Retail accumulation of native BTC and ETH units on a major exchange indicates persistent spot demand and a potential floor that can absorb selling pressure from derivatives unwind. Short-term volatility could remain elevated because derivatives and macro drivers still dominate price moves, and headline risk from Armstrong’s large insider sales may cause intermittent sell-the-news reactions. Over the medium to long term, steady retail buying reduces the likelihood of deep, sustained drawdowns if macro conditions stabilize, supporting higher lows and a more constructive market structure. Traders should treat the signal as modestly bullish for crypto prices but remain cautious: use prudent position sizing, stop-losses, and monitor regulatory developments and insider selling disclosures that can produce short-term negative spikes.