Bitcoin (CRYPTO: BTC) and various altcoins have seen a drastic decline, losing over $2 trillion in value over the past two years. Recently, Bitcoin fell below $60,000, while Ethereum dropped to $1,500. In response, Brian Armstrong, CEO of Coinbase (NASDAQ:COIN), defended Bitcoin, asserting that the crypto sector is thriving despite the downturn. He highlighted the growth of derivatives, stablecoins, and prediction markets, with perpetual exchanges processing over $2.37 trillion in Q1. Armstrong noted that the average daily volume in the stablecoin market surged to $117.1 billion, with daily transactions reaching 58.8 million. He believes Bitcoin is merely undergoing a cyclical downturn, as evidenced by its historical performance through multiple bear markets. The current decline is attributed to liquidity issues stemming from the AI trade, leading to significant withdrawals from Bitcoin and Ethereum ETFs, which have lost over $1.7 billion in assets this month alone. The market sentiment remains cautious, with the Crypto Fear and Greed Index indicating extreme fear among investors.