GENIUS Act Killed Bitcoin's Core Use Case, Analyst Warns

Gold has outperformed Bitcoin by nearly 100% since July 18, 2025 — the day the GENIUS Act was signed into law. Ravi Tanuku, managing member at Natural Capital, argues the divergence isn't a cycle story. It's a structural repricing: the Act created a government-sanctioned, dollar-backed stablecoin framework that absorbed the one demand Bitcoin reliably served — dollar access for consumers in capital-controlled economies.

The data are stark. Stablecoin market cap surged from ~$211 billion in January 2025 to over $306 billion by October, a 45% jump. Monthly issuance doubled from ~$6.6 billion pre-GENIUS to over $13 billion in the three months after passage. Bitcoin fell 43% over the same window. Capital didn't leave crypto — it stopped needing Bitcoin to reach dollar exposure.