"How Dollar Stablecoins Can Save Bitcoin – Cointelegraph"

# Stablecoins Set to Transform Bitcoin’s Price Cycles and Fuel Major Rallies The surge of dollar-backed stablecoins and upcoming regulatory clarity from the United States is expected to significantly reshape the dynamics of Bitcoin(BTC) and its price cycles. Analysts are predicting larger and more substantial rallies in the near future. *Cointelegraph* reported on October 6 that evolving U.S. regulations concerning stablecoins are emerging as a key driver for Bitcoin’s next significant increase. As policymakers and lawmakers deliberate over stablecoin frameworks, experts consider this to be a pivotal moment for the digital asset industry. Alice Li, U.S. Investment Partner at cryptocurrency venture capital firm Foresight Ventures, highlighted the potentially transformative impact of these regulatory changes. Li pointed to Bitcoin’s potential to surpass $150,000, asserting that "stablecoin legislation and policies in the U.S. will provide crucial foundational support for the market cycle." # Focus on U.S. Stablecoin Legislation Li emphasized the importance of the Stablecoin Innovation and Transparency Act, also known as the GENIUS Act, which aims to establish clear guidelines on stablecoin collateralization and adherence to anti-money laundering (AML) regulations. She noted that regulatory clarity could be a critical driver for Bitcoin to breach the $150,000 mark. Speaking at a *Cointelegraph* event on October 3, Li outlined how the anticipated cryptocurrency rebound in 2025 would likely be driven by U.S. regulatory changes. Key catalysts include the approval of Bitcoin as a reserve asset and evolving policies around stablecoins. "Stablecoins create long-term investment value," stated Li, highlighting their growing role as financial infrastructure for the digital asset sector. The GENIUS Act is expected to be put to a full U.S. Senate vote in the near future. # Stablecoins as Core Digital Asset Infrastructure Traditionally, stablecoins have been primarily used to facilitate cryptocurrency purchases. However, their utility is rapidly expanding into broader applications, such as cross-border remittances and payments. Platforms integrating stablecoins are also increasingly adopting cryptocurrencies like Bitcoin, enhancing their real-world utility. This paradigm shift could anchor stablecoins as essential infrastructure for the digital asset market. For instance, when combined with decentralized finance (DeFi), stablecoins could disrupt traditional financial systems. Hybrid DeFi services, where users can stake stablecoins and earn rewards in Bitcoin or other cryptocurrencies, present one innovative use case. # Gateway to Mass Adoption As stablecoins continue to gain traction, they could act as a gateway to mainstream adoption of digital assets. Their growing functionality and widespread integration may open new opportunities for cryptocurrencies like Bitcoin, serving both as a store of value and a medium of exchange. Analysts suggest that such developments could elevate cryptocurrencies to unprecedented levels of utility, further blending the lines between traditional finance and the digital economy. If the GENIUS Act successfully navigates the legislative process, stablecoins could become a cornerstone of the new financial era, ultimately driving Bitcoin and the broader crypto market to new heights.