Coinbase CEO Says Bitcoin Is Reinforcing the U.S. Dollar’s Reserve Role

Coinbase CEO Brian Armstrong says Bitcoin can reinforce the U.S. dollar’s reserve role by adding competition that rewards fiscal restraint. In a post on X, he wrote that Bitcoin is “good for USD” because it creates competition that can check high inflation and deficit spending.

Meanwhile, the Bitcoin price traded at $87,489 on Monday, down 1% over the past 24 hours. BTC slipped back after briefly touching above $90,000 during the morning rally. The cryptocurrency then stabilized near $87,000–$88,000 as trading activity increased.

Coinbase CEO Armstrong States Bitcoin Supports Dollar Credibility

Coinbase CEO Armstrong said that Bitcoin’s fixed supply provides investors with an alternative store of value when concerns about inflation or debt rise. He presented that option as a market signal that can pressure policymakers to avoid actions that weaken confidence in dollar assets.

He also said Bitcoin can function as a “check and balance on the dollar” during periods of deficit spending or inflation stress. Armstrong linked that idea to reserve-currency standing, saying that sustained inflation above economic growth can put a country’s reserve status at risk.

Inflation Remains Above 2%

Meanwhile, the U.S. Bureau of Labor Statistics reported the Consumer Price Index rose 2.7% over the 12 months ending November 2025. The same release noted that the BLS did not collect survey data for October 2025 due to a lapse in appropriations.

BLS said it could not retroactively collect the missing October survey data and resumed CPI data collection on November 14, 2025. According to the news, the October CPI release was cancelled because the shutdown disrupted data collection.

Earlier, BLS reported CPI rose 3.0% over the 12 months ending September 2025. That reading kept inflation above the Federal Reserve’s 2% goal, even before the October reporting break.

U.S. Debt Sits Above $38 Trillion

Additionally, Treasury’s “Debt to the Penny” data showed total U.S. federal debt at about $38.35 trillion as of December 24, 2025. The Treasury’s fiscal guide also described the national debt as the sum of debt held by the public and intragovernmental holdings.

Researchers and policymakers often point to reserve-currency status as a factor that supports demand for U.S. assets. The Council on Foreign Relations states that the dollar’s role as the primary reserve currency facilitates the United States’ ability to borrow more easily. The Philadelphia Fed also lists easier borrowing and the ability to sustain external deficits among the benefits of issuing a global reserve currency.

IMF reserve data for the third quarter of 2025 showed the U.S. dollar remained the largest share of reported reserves, at 56.92%. That figure has moved modestly over time, but it still reflects the dollar’s central position in official reserve holdings.

Institutional Bitcoin Adoption and ETF Flows

Corporate and fund participation has also kept Bitcoin tied to institutional balance sheets. In SEC Form 8-K, Strategy reported buying 1,229 BTC between December 22 and December 28 for $108.8 million, at an average price of $88,568 per Bitcoin.

Strategy reported total holdings of 672,497 BTC as of December 28, with an aggregate purchase price of $50.44 billion and an average acquisition price of $74,997. The filing also disclosed the sale of 663,450 shares of common stock under an at-the-market program, generating $108.8 million in net proceeds.

ETF flows remained a daily reference point for institutions and market makers. SoSoValue data showed U.S. spot Bitcoin ETFs recorded a $275.88 million net outflow on Friday, December 26, extending a multi-day outflow streak.

Coinbase Institutional described a market where derivatives influence liquidity and pricing, with perpetual futures taking a larger role. That structure has coincided with sharp swings in late 2025. Market reporting indicated that Bitcoin set a record near $126,000 in October before retreating to the high-$80,000 area by year-end.

Bitcoin traded around $87,661 on December 29, currently with an intraday range of roughly $86,780 to $90,247. Risk appetite appeared to be constrained, with the Crypto Fear & Greed Index at 24, classified as “Extreme Fear.”