Bitcoin and US Dollar Show ‘Symbiotic’ Relationship as Stablecoin Adoption Expands

Sam Lyman, head of research at the Bitcoin Policy Institute, said Bitcoin and the US Dollar share a “symbiotic” relationship driven by widespread trading activity. He explained that the largest trading pair for Bitcoin is BTC/USD, including the widely used stablecoin Tether USDt, which is backed by cash deposits and short-term U.S. government debt.

Lyman noted that increasing Bitcoin usage does not weaken the dollar, but instead reinforces its global role because most Bitcoin transactions are denominated in dollars. He compared this relationship to the historical petrodollar system, where global oil sales priced in dollars increased demand for the currency.

Stablecoin Policy and Global Competition Concerns

Lyman urged lawmakers to continue developing stablecoin regulations under the GENIUS regulatory framework, emphasizing the importance of protecting U.S. dollar influence.

He also highlighted actions by China, which has repeatedly banned Bitcoin and stablecoins to maintain strict capital controls. Despite restrictions, Chinese mining pools still account for more than 36% of global mining hashrate, showing continued participation in decentralized crypto activity even under regulatory pressure.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.