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.

Speaking 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 (BTC) 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.

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Li’s comments come as the industry is 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.

The passing of the legislation may inspire other major jurisdictions to follow suit. The GENIUS Act is a “good start,” said Li, adding:

“It has set a great innovation frontier for the rest of the world, and I believe that all the other countries, especially Asian countries, Singapore, and Hong Kong, will quickly follow.”

Hong Kong has already proposed a bill similar to the GENIUS Act, said Li, referring to the Stablecoin Bill passed by Hong Kong’s Legislative Council on May 21, enabling major financial institutions to apply with the Hong Kong Monetary Authority to become licensed stablecoin issuers, as the bill is expected to pass before the end of 2025.

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More crypto regulatory developments may lay the foundation for a Bitcoin cycle top of over $150,000, said Li. “I’m a strong believer in Bitcoin and the crypto market. So I think Bitcoin could go to at least $150,000 in this cycle.”

The year’s first interest rate cut from the US Federal Reserve may significantly bolster Bitcoin’s price momentum, she added.

Markets are currently pricing in a 95% chance that the Fed will keep interest rates steady during the next Federal Open Market Committee (FOMC) meeting on June 18, according to the latest estimates of the CME Group’s FedWatch tool.

Meanwhile, crypto VC deals hit their lowest monthly count of just 62 investment rounds in May, resulting in $909 million raised for the industry. Some analysts have pointed to macro-specific and “seasonal” liquidity patterns behind the pre-summer slump.

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