Brian Armstrong, CEO of Coinbase, Warns of Bitcoin’s Rise Amid U.S. Fiscal Concerns

Brian Armstrong, CEO of cryptocurrency exchange Coinbase, issued a stark warning on social media platform X, later reposted by Elon Musk: “If voters fail to demand fiscal responsibility from Congress—reducing the deficit and paying down the national debt—Bitcoin could eventually displace the dollar as the global reserve currency.”

“While I strongly support Bitcoin, a stable and prosperous America remains vital for the world. We must address our financial challenges,” Armstrong added.

U.S. Dollar Under Pressure as Analysts Predict Decline

Musk’s amplification of Armstrong’s remarks comes amid growing concerns over the U.S. dollar’s stability. Morgan Stanley analysts forecast the dollar could weaken to pandemic-era lows this year, driven by anticipated Federal Reserve rate cuts and the growing influence of alternative currencies.

In a note obtained by Business Insider, strategists wrote: “Interest rates and currency markets are entering a significant shift—expect a sustained drop in the dollar and steeper yield curves after two years of volatility. We project a 9% decline in the dollar index over the next 12 months, down to 91.”

JPMorgan CEO Jamie Dimon echoed these concerns, cautioning that escalating U.S. debt could destabilize the bond market as credit spreads widen. “If global confidence in the dollar wanes, we could see a dangerous expansion in credit spreads—posing serious economic risks,” Dimon told Fox Business.

Peter Vassallo, a currency-focused portfolio manager at BNP Paribas Asset Management, noted: “The dollar appears to be entering a prolonged downturn. While some trade-related risks have eased, broader concerns about U.S. policy volatility and trade hostility persist.”

Musk Condemns Fiscal Irresponsibility Amid Rising Debt

Elon Musk, who has repeatedly criticized U.S. debt expansion, recently broke with former President Donald Trump over his tax policies. Despite supporting Trump’s 2024 campaign, Musk denounced the administration’s proposed tax bill, which the Congressional Budget Office estimates would add $3.8 trillion to the national debt over the next decade—pushing it toward $40 trillion.

“I can no longer stay silent,” Musk posted on X. “This bloated, irresponsible spending bill is an affront to fiscal sanity.” He warned that the legislation would “explode the deficit to $2.5 trillion, saddling Americans with unsustainable debt.”

Bitcoin Gains Traction as a Hedge Against Dollar Weakness

With governments—particularly the U.S.—fueling growth through debt accumulation, Bitcoin’s appeal as a scarce digital asset has surged. Corporations are increasingly allocating treasury reserves to Bitcoin, following MicroStrategy’s pioneering move in 2020.

Nic Puckrin, founder of The Coin Bureau, observed: *“As the dollar weakens, capital will continue flowing into Bitcoin as investors seek stability. With its sustained rally above $100,000, Bitcoin is emerging as the new safe-haven asset.”*

Amid mounting debt, inflation risks, and dollar depreciation, the debate over Bitcoin’s role in the global financial system is intensifying—with some viewing it as an inevitable alternative to traditional reserve currencies.