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Bitcoin Policy Institute: Bitcoin and dollar-pegged stablecoins have formed a “symbiosis”, 2026/04/06 10:50:28
Bitcoin and dollar-backed stablecoins are in a “symbiotic” relationship, mutually reinforcing each other amid the increasing adoption of crypto assets, stated Sam Lyman, head of research at the Bitcoin Policy Institute.
According to him, the primary trading pair in the market remains BTC/USD, which includes transactions via the Tether (USDT) stablecoin, backed by dollar assets and short-term U.S. government bonds. This creates a dependency of the Bitcoin market on dollar liquidity.
“There is a symbiotic connection between Bitcoin and the dollar system, as BTC is most frequently traded in dollars. These instruments enhance each other, which contradicts the common belief that BTC will undermine the dollar,” Lyman noted.
He further mentioned that a significant portion of Bitcoin transactions occurs in dollars, sustaining demand for the U.S. currency and its role in the digital economy. In this framework, Bitcoin is integrated into the existing financial infrastructure rather than competing against it.
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The analyst compared the current situation to the petrodollar mechanism, where global oil trade is denominated in dollars, creating external demand for the U.S. currency.
Lyman also commented on China’s policy regarding crypto assets. He indicated that authorities are tightening control over decentralized technologies, including Bitcoin and stablecoins, due to risks to the capital control system.
China has reaffirmed its ban on crypto asset transactions and, by 2025, is focusing on the development of the digital yuan—a state-backed digital currency (CBDC) intended for managing financial flows.
However, these restrictions have not resulted in a complete halt of activity: Chinese mining pools are estimated to control over 36% of the global Bitcoin network hash rate, despite the formal ban on mining.
This indicates a continued connection between the crypto market and the traditional financial system, where the dollar continues to play a crucial role even amid the rise of decentralized instruments, concluded the analyst.
Previously, Tim Draper, founder of venture firm Draper Associates, stated that Bitcoin could become the dominant form of money, despite doubts about its suitability for everyday transactions.
