- Bitcoin provides a market check that helps control US inflation and supports the dollar.
- Crypto trading is shifting from retail hype to institutional and futures-driven strategies.
- Stablecoins are growing and reinforcing the dollar while offering new financial opportunities.
Coinbase CEO Brian Armstrong emphasized the use of Bitcoin in underpinning the US dollar. He proposed that it generates healthy competition that forces policy makers to check inflation and deficits. The remarks follow ongoing concerns about the nation’s rising debt, now surpassing $38 trillion.
Analysts note that Bitcoin could gradually act as a reserve asset if fiscal discipline is not enforced. Armstrong emphasized that the US economy’s stability remains critical even as cryptocurrency gains influence.
Shifts in Cryptocurrency Trading
Industry research points to a major shift in trading patterns. Retail-driven markets and meme-coin speculation are being replaced by institutional activity. Large exchanges now see trading dominated by perpetual futures. This change affects price movements, as leverage, liquidity, and funding rates play central roles.
Previously, price changes were mostly driven by simple buying and selling. The new environment encourages more structured and strategic trading practices. Analysts suggest this transition signals the end of the “Wild West” era in crypto markets.
Inflation, Debt, and Policy Implications
The US is still under high inflationary pressures. In September, consumer prices increased to 3%, after a 2.3% rate in April. Economists believe the inflation will decline in 2026 following a short-lived increase at the beginning of the year. Armstrong and other specialists caution that the current high debt levels may sabotage the reserve position of the dollar.
He stressed that Bitcoin indirectly prompts the Federal Reserve as well as regulators to remain optimistic about the economy. The urgent fiscal vigilance is becoming acute due to the increasing debt-to-GDP ratio which now stands at over 120%.
Stablecoins and Financial Innovation
Stablecoins are gaining attention as tools that reinforce the dollar’s global role. Just recently, World Liberty Financial introduced a proposal that could reshape how its USD1 stablecoin expands across crypto markets. Their rewards challenge traditional banking by returning interest directly to users. Critics argue that proposed legislation on stablecoins balances consumer protection with innovation. Industry leaders caution that restrictive policies could limit benefits and slow financial progress.
Despite bank concerns, research indicates stablecoins do not destabilize smaller banks. The US Treasury estimates the stablecoin market could grow from $312.6 billion to $2 trillion by 2028. Initiatives such as the GENIUS Act provide a framework to regulate and support this growth.
