Armstrong says Bitcoin price tracks inflation fears more than mining shifts

Coinbase CEO Brian Armstrong said Bitcoin’s long-term price is driven more by inflation fears than by mining activity or network energy use, arguing that hashpower does not directly determine BTC’s value because Bitcoin’s difficulty adjustment keeps block production on schedule if miners exit. In new comments on X, Armstrong said the amount of energy devoted to mining is less important than investors’ expectations about inflation, adding that persistent budget deficits in democratic countries could support long-term demand for Bitcoin. His remarks come as debate over energy allocation between crypto mining and artificial intelligence has intensified, after Chamath Palihapitiya argued that power and computing capacity are becoming strategic resources competing between the two sectors.