Bitcoin Near the End of 2025: A VC’s View on Its Strategic Role
According to Alice Li, accomplice at Foresight Ventures, the digital forex market is driving a protracted bull run that would peak in the coming months. This present rally stands out from earlier ones in a number of methods. Unlike the 2021 bull market, which was pushed by retail frenzy, this development is fueled by regular institutional shopping for via ETFs.
Looking again at the previous yr’s developments, the use of low leverage and high whale accumulation has marked a big shift in the Bitcoin market’s tradition. This bull market is notable for being one of the quietest on report, with minimal memecoin hype.
As Bitcoin and altcoin ETFs lead the method, the query stays: what is going to set off a tidal wave of capital circulate that would push the Bitcoin value to $150,000? The market is at present in a novel transition section the place new legal guidelines, like GENIUS, and Bitcoin reserve shifts may have lasting impacts.
The GENIUS Act, Stablecoin Clarity as a Liquidity Engine
On July 18, 2025, United States President Donald Trump signed the GENIUS Act into legislation. With this legislation laying the groundwork for stablecoin issuance and cost engagements, it has a far-reaching implication for the total market.
With the stablecoin law now in place, issuers are anticipated to implement bank-like requirements, together with capital buffers, Know-Your-Customer (KYC), Anti-Money-Laundering (AML) checks, and real-time auditability.
GENIUS has efficiently turned stablecoins from “shadow cash” right into a dependable liquidity channel. This has created new alternatives for the wider market, together with permitting institutional-grade settlement layers for crypto merchants and conventional finance companies getting into the area.
With the stablecoin legislation guiding improvements in the market, the doorways to tokenized dollar-denominated instruments have been opened. These devices may also help in powering the Decentralized Finance and repo market as collateral.
Beyond these direct advantages, the legislation may also help reposition dollar-backed stablecoins to counter the Chinese e-CNY or CBDC push. Overall, the United States will not path behind different areas like Hong Kong and Singapore with regulatory concord that’s fueling market breakout.
Beyond ushering in the ‘Basel second’ in crypto, the GENIUS legislation may also help drive liquidity into the broader crypto market.
The Strategic Bitcoin Reserve: America’s Twenty first-century Gold Play
Five to 10 years in the past, hardly any nation was discussing adopting Bitcoin as a strategic reserve asset. Now, that’s modified, with nations like the United States, Switzerland, and El Salvador wanting into it as a possible asset for his or her nationwide treasuries.
Although its technological potential has at all times been acknowledged since the begin, it’s now extra a strategic determination to again the coin.
The focus on Bitcoin as an asset has already gained traction in some international locations like El Salvador, Bhutan, Brazil, and Russia. While that is vital for the broader adoption of Bitcoin, the actual alpha is centered on the United States. As it stands, lots of US Think Tanks and asset managers are actually brazenly discussing including Bitcoin as a reserve asset.
Bitcoin as the Next Global Reserve Currency | Source: BitsAreFuture
With the once-unthinkable shift in Bitcoin adoption now potential, a worldwide precedent may quickly be set. Should the U.S Federal Reserve or Treasury Department allocate some funds to BTC, it should legitimize the coin as a macro hedge.
The impression of this shift could also be seen in the value of Bitcoin. Sovereign accumulation of BTC will immediately scale back the asset’s volatility. By implication, a extra steady flooring value might be recorded for the coin, setting it virtually at par with Gold.
Through allocations to Bitcoin, the US can surmount the Triffin Dilemma, which is actually “the basic battle confronted by a rustic with a worldwide reserve forex.” Since it should provide sufficient USD for international commerce with out eroding confidence in the forex, Bitcoin, drawing on its deflationary options, can function a correct hedge to look at.
With Bitcoin, the US, or any nation, can hedge in opposition to its personal energy.
Fed coverage, Asian liquidity and cross-border momentum
No nation’s financial system or financial system operates in a silo, as they’re all complementary. The insurance policies from the Federal Reserve can have an oblique impression on different economies and new funding instruments like Bitcoin.
Should the Fed reduce rates of interest as is predicted this month, the liquidity increase will now have a regulated pathway to circulate into Bitcoin via ETFs. This is a novel shift in the potential circulate of capital in the previous few years.
It is value noting that China is not directly competing with the US via Hong Kong’s strategic crypto pivot. While the world continues to be reliant on the US Dollar as the world’s reserve forex, Bitcoin is serving as a impartial asset for traders betting on the greatest of each worlds.
Ultimately, chances are high there for Bitcoin to shift from its tech stock correlation with its risk-on/off sentiment, sure to face a reset. This will assist shift it again to its core position as a retailer of worth.
The Bitcoin future is vivid
From the regulatory shift in the crypto market to the rising adoption of Bitcoin by sovereign nations, there’s a readability that BTC is at present undervalued.
With extra reserve allocations anticipated earlier than the finish of this yr, the much-acclaimed $150,000 forecast now aligns with a revised valuation mannequin. Different components of the crypto ecosystem have recorded vital milestones this yr. However, fairly than the value hikes, 2025 will probably be remembered as the yr marked by the “nice re-rating,” during which BTC moved from its speculative asset tag to a core reserve asset.
The query for asset managers and VCs now stays whether or not they’re keen to cross on the alternative to get early onboarding to Bitcoin or not. With high gamers vying to be first movers, the path to observe is sort of apparent.
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