Despite a week of price consolidation for Bitcoin (BTC), emerging digital asset legislation may provide the next significant catalyst for the world’s first cryptocurrency.
Upcoming stablecoin rules, such as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, may lay the foundation for a Bitcoin cycle top of over $150,000, according to Alice Li, investment partner and head of US at crypto venture capital firm Foresight Ventures.
Meanwhile, venture capitalist (VC) interest has slumped. The number of VC deals closed recorded its lowest month of the year in May, with just 62 investment rounds resulting in $909 million raised.
Crypto fundraising trends, monthly chart. Source: Rootdata
A challenging “macro backdrop” paired with “higher-for-longer policy rates, jittery bond markets and fresh tariff headlines have made it harder for risk assets to get new M&A deals over the finish line,” Patrick Heusser, head of lending at Sentora and a former investment banker, told Cointelegraph.
Bitcoin reserve, stablecoin regulations big 2025 market catalysts, says VC
Improving regulatory clarity in the United States may push Bitcoin past $150,000 during the current market cycle, according to Alice Li, investment partner and head of US at crypto venture capital firm Foresight Ventures.
During Cointelegraph’s Chain Reaction X Spaces show on June 3, Li said the crypto market’s 2025 rally had been driven mainly by shifting US policy.
“One of the strongest drivers is definitely the policy change,” she said, referencing US President Donald Trump’s Bitcoin reserve approval and stablecoin policy developments as the main catalysts for Bitcoin price upside in 2025.
“Stablecoin will be one of the strongest places that I would invest long term,” she added, citing regulatory progress in the US.
Source: Cointelegraph
Li’s comments came as the industry was awaiting a full Senate vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to set clear rules for stablecoin collateralization and mandate compliance with Anti-Money Laundering laws.
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