According to Alice Li, partner at Foresight Ventures, the digital currency market is riding a prolonged bull run that could peak in the coming months. This current rally stands out from previous ones in several ways. Unlike the 2021 bull market, which was driven by retail frenzy, this trend is fueled by steady institutional buying through ETFs.
Looking back at the past year’s trends, the use of low leverage and high whale accumulation has marked a significant shift in the Bitcoin market’s culture. This bull market is notable for being one of the quietest on record, with minimal memecoin hype.
As Bitcoin and altcoin ETFs lead the way, the question remains: what will trigger a tidal wave of capital flow that could push the Bitcoin price to $150,000? The market is currently in a unique transition phase where new laws, like GENIUS, and Bitcoin reserve shifts could have lasting impacts.
On July 18, 2025, United States President Donald Trump signed the GENIUS Act into law. With this law laying the groundwork for stablecoin issuance and payment engagements, it has a far-reaching implication for the entire market.
With the stablecoin law now in place, issuers are expected to implement bank-like standards, including capital buffers, Know-Your-Customer (KYC), Anti-Money-Laundering (AML) checks, and real-time auditability.
GENIUS has successfully turned stablecoins from “shadow money” into a reliable liquidity channel. This has created new opportunities for the wider market, including allowing institutional-grade settlement layers for crypto traders and traditional finance firms entering the space.
With the stablecoin law guiding innovations in the market, the doors to tokenized dollar-denominated instruments have been opened. These instruments can help in powering the Decentralized Finance and repo market as collateral.
Beyond these direct benefits, the law can help reposition dollar-backed stablecoins to counter the Chinese e-CNY or CBDC push. Overall, the United States will no longer trail behind other regions like Hong Kong and Singapore with regulatory harmony that is fueling market breakout.
Beyond ushering in the ‘Basel moment’ in crypto, the GENIUS law can help drive liquidity into the broader crypto market.
Five to ten years ago, hardly any country was discussing adopting Bitcoin as a strategic reserve asset. Now, that’s changed, with nations like the United States, Switzerland, and El Salvador looking into it as a potential asset for their national treasuries.
Although its technological potential has always been recognized since the start, it’s now more a strategic decision to back the coin.
The focus on Bitcoin as an asset has already gained traction in some countries like El Salvador, Bhutan, Brazil, and Russia. While this is important for the broader adoption of Bitcoin, the real alpha is centered on the United States. As it stands, a lot of US Think Tanks and asset managers are now openly discussing adding Bitcoin as a reserve asset.
Bitcoin as the Next Global Reserve Currency | Source: BitsAreFuture
With the once-unthinkable shift in Bitcoin adoption now possible, a global precedent could soon be set. Should the U.S Federal Reserve or Treasury Department allocate some funds to BTC, it will legitimize the coin as a macro hedge.
The impact of this shift may be visible in the price of Bitcoin. Sovereign accumulation of BTC will directly reduce the asset’s volatility. By implication, a more stable floor price could be recorded for the coin, setting it almost at par with Gold.
Through allocations to Bitcoin, the US can surmount the Triffin Dilemma, which is essentially “the fundamental conflict faced by a country with a global reserve currency.” Since it must supply enough USD for global trade without eroding confidence in the currency, Bitcoin, drawing on its deflationary features, can serve as a proper hedge to watch.
With Bitcoin, the US, or any country, can hedge against its own power.
No country’s economy or monetary system operates in a silo, as they are all complementary. The policies from the Federal Reserve can have an indirect impact on other economies and new investment tools like Bitcoin.
Should the Fed cut interest rates as is expected this month, the liquidity boost will now have a regulated pathway to flow into Bitcoin through ETFs. This is a unique shift in the potential flow of capital in the past few years.
It is worth noting that China is indirectly competing with the US through Hong Kong’s strategic crypto pivot. While the world is still reliant on the US Dollar as the world’s reserve currency, Bitcoin is serving as a neutral asset for investors betting on the best of both worlds.
Ultimately, chances are there for Bitcoin to shift from its tech stock correlation with its risk-on/off sentiment, bound to face a reset. This will help shift it back to its core role as a store of value.
From the regulatory shift in the crypto market to the growing adoption of Bitcoin by sovereign nations, there is a clarity that BTC is currently undervalued.
With more reserve allocations expected before the end of this year, the much-acclaimed $150,000 forecast now aligns with a revised valuation model. Different parts of the crypto ecosystem have recorded significant milestones this year. However, rather than the price hikes, 2025 will be remembered as the year marked by the “great re-rating,” in which BTC moved from its speculative asset tag to a core reserve asset.
The question for asset managers and VCs now remains whether they are willing to pass on the opportunity to get early onboarding to Bitcoin or not. With top players vying to be first movers, the path to follow is quite obvious.
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