Bitcoin and US dollar have symbiotic relationship, says BPI

Bitcoin and the U.S. dollar have a de facto symbiotic relationship, the Bitcoin Policy Institute (BPI) told Cointelegraph. Sam Lyman, the institute's director of research, said that the largest trading pairs for BTC are typically BTC/USD and BTC/USDT. Contrary to the conventional perception that BTC weakens the dollar system, it actually plays a complementary role with the dollar, he explained. Lyman compared the relationship to the petrodollar system that began in the 1970s, arguing that since Bitcoin is most frequently traded against the dollar, it generates demand for the U.S. currency. He also noted that China's ban on cryptocurrencies, including stablecoins, is a response to the threat they pose to the country's capital control system. However, Lyman suggested that activities such as BTC mining and stablecoin inflows appear to remain robust in China, with mining pools with Chinese roots still accounting for over 36% of the global hashrate.