Platforms like Robinhood are also feeling the effects of fluctuating investor sentiment, which is closely tied to national policy changes.

He commended bipartisan efforts in Congress to pass crypto-related legislation, noting the positive impact of the Trump administration on the industry.

Brian Armstrong, CEO of Coinbase, has suggested that Bitcoin could potentially become the world's reserve currency if the U.S. fails to address its ballooning debt.

Armstrong expressed concern that ongoing government borrowing without fiscal reform could undermine the U.S. dollar's position as the global reserve currency.

While he hopes the U.S. can maintain its reserve currency status, Armstrong acknowledges that rising national debt may push retail investors towards Bitcoin as a more reliable asset.

He warns that a lack of fiscal control could lead to a shift in global reserve currency preferences, making digital assets like Bitcoin more prominent.

He pointed out that historical instances show economic troubles arise when debt-to-GDP ratios reach between 150% and 200%.

Bitcoin's performance is increasingly influenced by geopolitical and financial stressors, highlighting the need for systemic alternatives in a high-debt environment.

Movements within crypto-related companies reflect broader concerns about financial resilience and the future of currency structures.

Coinbase reported a 24% decline in sales in the first quarter of 2025 compared to the previous year, raising concerns about its earnings potential amid decreased trading activity.

Despite some positive developments in the crypto market, Coinbase shares have only risen by 3% year-to-date, mirroring the performance of the S&P 500.

Armstrong believes that regulatory clarity will benefit the crypto market, and he is actively engaging with lawmakers to advance crypto legislation.