Coinbase CEO Reveals Shock U.S. Dollar Prediction As Bitcoin Price Smashes $40,000, Helping Ethereum, XRP And Crypto Soar

Bitcoin has suddenly surged higher over the last week, rocketing over $40,000 as analysts reveal when a Wall Street earthquake could hit the crypto market.

The bitcoin price has added around 170% since this time last year, helping the price of other major cryptocurrencies including ethereum and XRP to soar, as China and Federal Reserve gear up for what some expect to be a huge round of fresh money-printing.

Now, as fears emerge that U.S. dollar dominance is facing "a crypto-yuan hostile takeover" from China, the chief executive of crypto exchange Coinbase has predicted bitcoin will be "the key to extending western civilization" as the U.S. continues to inflate the dollar.

Bitcoin's historical halving that's expected to cause crypto price chaos is just around the corner! Sign up now for the free CryptoCodex—A daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market

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"The natural trend of whichever country has the reserve currency is to inflate the money supply and increase deficit spending until it loses that advantage," Coinbase CEO Brian Armstrong posted to X. "The U.S. is somewhere on this journey," Armstrong said, pointing to billionaire hedge fund founder Ray Dalio's prediction that U.S. dollar dominance is fading.

In September, U.S. national debt—the amount of money borrowed by the federal government to cover operating expenses—topped $33 trillion for the first time, according to figures from the U.S. department of the Treasury, with spending turbo-charged by the Covid crisis and lockdowns that paralyzed the economy in recent years.

Meanwhile, the Federal Reserve has embarked on a frantic series of interest rate hikes as it wrestles to get run-away inflation under control, hiking rates at their fastest-ever clip to levels not seen since before the 2008 global financial crisis.

While some have said the dollar's main rivals, China's yuan and the euro, are equally at risk of debasement, Armstrong thinks "people have an alternative now with crypto."

"They may start moving fiat into crypto, as an antidote to inflation," Armstrong said. "Contrary to what some may assume, I don’t think this be a threat to the dollar and the U.S., I think it will be a natural check and balance that will complement the dollar, and be the best defender of long term American interests (and western civilization more broadly). It’s better to move from dollars to crypto than to another country or region’s fiat. I also think both fiat and crypto will co-exist for a long time."

Last month, Dalio, the founder of the world's largest hedge fund Bridgewater Associates, predicted the swelling U.S. debt pile of $33.7 trillion is about to reach an "inflection point"—something that one researcher has called the "bullish case for bitcoin."

Some—including Tesla billionaire Elon Musk—have warned the soaring U.S. debt pile could push the Fed into a "debt death spiral," creating a vicious circle that it may not be able to escape.

Last month, analysts with Wall Street investment bank Jefferies warned the Fed will soon be forced to restart its money printer—potentially collapsing the U.S. dollar and fueling a bitcoin price boom to rival gold.