Ethereum News Today: Coinbase Mandates AI Adoption or Exit as Bitcoin Faces Institutional Exodus

Coinbase CEO Brian Armstrong has taken a firm stance on the adoption of artificial intelligence (AI) in the company's engineering processes, mandating that all engineers on-board with AI coding tools or face consequences. During a recent appearance on the "Cheeky Pint" podcast, Armstrong revealed that some engineers were terminated for refusing to use AI tools like GitHub Copilot and Cursor, despite the company offering enterprise licenses. The CEO emphasized the critical importance of AI in the future of coding and insisted on rapid integration, stating that engineers must at least activate their AI accounts by the end of the week, with non-compliance resulting in disciplinary action [1].

Armstrong's approach has sparked internal debate, with some employees criticizing the heavy-handed tactics. However, the CEO argued that the move was necessary to send a clear message about the company’s commitment to AI. He also highlighted ongoing efforts to train employees, including monthly "AI speed run" sessions where teams share innovative ways to leverage AI in their workflows. Armstrong aims to reach a goal of 50% of code being written by AI by the end of the quarter [2]. The decision reflects a broader industry trend, as companies like Google are also pushing for AI integration in daily operations.

In parallel, Armstrong has made headlines for his bullish stance on Bitcoin. During the same podcast, he reiterated his prediction that Bitcoin will hit $1 million, a forecast that has captured significant attention in the crypto community. While this is a speculative view, it aligns with broader market sentiments fueled by institutional adoption and macroeconomic factors. The CEO’s confidence is not an isolated voice in the industry, as recent data indicates strong institutional inflows into both Bitcoin and Ethereum. However, the market has seen a notable shift in capital flows between the two cryptocurrencies in August 2025 [3].

Bitcoin experienced a pullback from record highs of around $123,000, coinciding with ETF net outflows totaling $233.57 million. At the same time, Ethereum saw substantial institutional accumulation and ETF inflows, with over $2.9 billion entering ETH-related products. This shift suggests a strategic reallocation of capital from Bitcoin to Ethereum, driven by institutional investors seeking growth-oriented assets. Ethereum’s ecosystem, including DeFi and staking rewards, has increasingly attracted funds looking for more than just a "digital gold" store of value [4].

Analysts have noted that Ethereum’s price gains are largely tied to these institutional inflows, with on-chain metrics confirming heightened activity in the DeFi space and stablecoin ecosystems. According to Lennaert Snyder, a crypto analyst and partner at Bybit, approximately 60–70% of Ethereum’s price movement can be attributed to ETF inflows, while the remaining 30–40% is driven by organic usage such as staking and DeFi participation. This dynamic highlights Ethereum’s unique position as a multi-faceted asset that offers both speculative and utility-based value.

Bitcoin, despite its recent dip, remains a key component of crypto portfolios, particularly for conservative institutions seeking a less volatile asset. However, the growing institutional interest in Ethereum underscores a diversification strategy where Bitcoin serves as the anchor while Ethereum provides a more dynamic growth narrative. The interplay between these two cryptocurrencies is likely to continue shaping the broader crypto market, with macroeconomic factors, regulatory developments, and technological advancements playing critical roles in determining their trajectories.

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[1] Coinbase CEO explains why he fired engineers who didn't ... (https://techcrunch.com/2025/08/22/coinbase-ceo-explains-why-he-fired-engineers-who-didnt-try-ai-immediately/)

[2] Coinbase CEO Fired Employees Who Didn't Adopt AI After ... (https://www.businessinsider.com/coinbase-ceo-fired-employees-not-using-ai-tools-onboarding-2025-8)

[3] Bitcoin Pullback Could Coincide With Institutional Rotation ... (https://www.bitget.com/news/detail/12560604927647)

[4] Exclusive: Ethereum Skyrockets on ETF Boom, Analyst ... (https://coinpedia.org/news/exclusive-ethereum-skyrockets-on-etf-boom-analyst-says-bitcoin-is-losing-ground/)