Unlocking: Stablecoin Legislation to Power Next Bitcoin Market Cycle, Expert Predicts $150K+ Peak
Are you ready for the next phase of the crypto market? Despite recent price consolidation, a significant catalyst is on the horizon: upcoming US stablecoin rules. This potential shift in Stablecoin legislation could be the primary driver for the next major move in the market, setting the stage for Bitcoin’s future trajectory.
How Stablecoin Legislation Impacts the Bitcoin Market Cycle
The current Bitcoin market cycle might find its next significant catalyst in regulatory developments. According to Alice Li, investment partner at Foresight Ventures, forthcoming US stablecoin rules, such as the proposed GENIUS Act, could lay the groundwork for Bitcoin reaching over $150,000 in 2025. Li highlighted shifting US policy, including discussions around a potential US Bitcoin reserve and stablecoin policy, as key drivers for potential price upside. Regulatory clarity in the United States is seen as a major factor that could push Bitcoin past previous highs.
While regulatory progress offers optimism, the broader investment landscape faces challenges. Venture capital interest has seen a dip, with May recording the lowest number of VC deals this year. Only 62 investment rounds closed, raising $909 million. This slump is attributed to a difficult ‘macro backdrop,’ including higher interest rates, volatile bond markets, and trade tariff concerns, making it harder for risk assets to secure funding and complete deals.
Regulatory Clarity Fuels Crypto Regulation and RWA Tokenization
Beyond stablecoins, improving Crypto regulation is having a tangible impact on other sectors of the digital asset space. The tokenization of real-world assets (RWAs) has seen significant growth in the first half of 2025. This sector involves representing tangible or financial assets on a blockchain, enhancing accessibility and trading opportunities.
Key figures on RWA growth:
- The RWA market surged over 260% in the first half of 2025.
- Total valuation surpassed $23 billion, up from $8.6 billion at the start of the year.
- Tokenized private credit leads the market share at 58%.
- Tokenized US Treasury debt follows at 34%.
While RWAs currently lack a dedicated regulatory framework and are often considered securities by the SEC, they benefit indirectly from broader positive developments in crypto regulation. Increased clarity encourages greater participation from traditional financial players.
Ethereum DeFi Reclaims Market Share Amid Stablecoin Growth
The Ethereum DeFi ecosystem is showing signs of a comeback in 2025. Driven by increased bot activity and substantial stablecoin volume, the Ethereum mainnet is regaining its central position in decentralized finance. Data indicates automated bots facilitated 4.84 million stablecoin transfers on Ethereum’s layer-1 in May, totaling $480 billion – a new high.
This surge is linked to lower transaction fees earlier in the year, which helped reverse a trend of users and liquidity migrating to rival blockchains and Ethereum layer-2 networks. As a result, the mainnet’s stablecoin market capitalization grew by 11% in 2025, taking market share back from its layer-2s, though the combined L2 stablecoin market only saw a minor 1% decrease.
Exploring Dark Pool DEXs and Addressing Security Concerns
Innovation continues in the DeFi space, alongside reminders of persistent security challenges. Binance co-founder CZ recently proposed creating dark pool perpetual swap DEXs to combat market manipulation. He highlighted that the transparency of current DEXs, where all orders are visible in real-time, makes them vulnerable to front-running and MEV bot attacks, particularly problematic for large orders and liquidations.
Meanwhile, the crypto exchange BitoPro confirmed a security breach resulting in over $11.5 million in losses from its hot wallets in May. The exploit occurred during a wallet system upgrade. Assets were moved across multiple chains and later sent to mixers like Tornado Cash or bridged to Bitcoin via THORChain, common tactics used by hackers to obscure funds. The exchange faced criticism for a delay in publicly disclosing the incident, leading to user reports of withdrawal issues.
The Bigger Picture: Market Performance and Future Outlook
Despite specific areas of growth and innovation, the broader DeFi market has seen a challenging week. Most of the top 100 cryptocurrencies by market capitalization ended the week with price declines. Tokens like DeXe (DEXE) and Virtuals Protocol (VIRTUAL) saw significant drops.
The convergence of clearer Crypto regulation, particularly around stablecoins, the ongoing development within Ethereum DeFi, and the rapid expansion of RWA tokenization paint a complex but potentially optimistic picture for the coming year. While VC funding shows caution, the foundational elements for a significant market move, potentially driving the next Bitcoin market cycle, appear to be strengthening, largely contingent on favorable Stablecoin legislation taking shape.
Stay tuned for further developments in this dynamic space.
