Prominent crypto analyst Capo remains bullish on Bitcoin (CRYPTO: BTC), arguing that current market conditions resemble an accumulation phase rather than the start of a deeper collapse. In a June 11 market update, Capo acknowledged that his bullish thesis has not played out yet but maintained that his broader outlook remains unchanged. He noted that high-timeframe market calls often take longer to develop and that timing is frequently the most difficult part of macro investing.

Despite Bitcoin's weakness, Capo continues to view the current area as a major support zone, similar to the situation in February. He pointed to increasingly bearish sentiment as a potential contrarian indicator, noting that many traders are now expecting significantly lower prices. Capo believes capital could eventually rotate from equities into crypto after the strong stock market rally seen in recent months.

Altcoins Show Relative Strength

Another key observation is the relative resilience of altcoins. "Altcoins have been holding much better than BTC, which is a sign of strength," he said. Many altcoins remain down between 90% and 99% from their highs, often without experiencing meaningful dead-cat bounces. "This is not time to sell, but to buy," Capo suggests.

Four-Year Cycle Evolution

When asked whether the traditional four-year Bitcoin cycle is over, Capo noted the framework may still be intact but changing. If the 2026-2028 period remains largely bearish and the next major recovery does not begin until after the next halving, he views that as a distorted version of the traditional cycle. "Kind of like music: you can still have a four-beat rhythm, but every few bars the structure can shift," Capo said. He predicts that Bitcoin could remain trapped in a broader macro bearish phase that includes sharp countertrend rallies.

Kevin O'Leary, Chairman of O'Leary Ventures, stated that Bitcoin's recent stagnation is due to the absence of a regulatory framework rather than a lack of investor interest. Appearing on Fox Business on June 10, O'Leary attributed the stall in Bitcoin's growth to the fact that the "real catalyst"—legislative clarity—has yet to arrive. He emphasized that large institutions, pension funds, and sovereign wealth funds are waiting for the CLARITY Act to become law before making meaningful allocations to digital assets.

O'Leary predicted that once regulatory clarity is established, sovereign wealth funds could allocate 1% to 3% of their portfolios to crypto. He noted that this institutional adoption is a critical factor for Bitcoin's price recovery and long-term stability. "That's why I believe the next phase of crypto adoption will be driven less by speculation and more by legislation," O'Leary stated.

Blockchain Infrastructure Opportunity

O'Leary suggested that the most significant investment opportunity may lie in blockchain infrastructure rather than Bitcoin itself. He pointed out that stablecoins have already received a regulatory boost through the GENIUS Act. The next phase of adoption, according to O'Leary, could involve widespread use of blockchain technology across corporate America for compliance systems, logistics, inventory management, and contracts.

"When regulatory clarity arrives, one blockchain network could become the foundation for how businesses operate across every sector of the economy," O'Leary remarked. He believes that once regulatory clarity arrives, one blockchain network could emerge as the preferred platform for multiple industries.

Legislative Path and Market Outlook

The CLARITY Act passed the Senate Banking Committee vote last month, marking a key milestone in establishing clear rules for the cryptocurrency industry in the U.S. The bill received bipartisan support and now heads to the Senate floor, where negotiators will work to merge the legislation with the Senate Agriculture Committee's version. After the Senate approves the bill, lawmakers must reconcile it with the House version before sending it to the President's desk. Polymarket bettors assign a 49% possibility that the bill becomes law this year.

Unlike January's collapse, most cryptocurrency firms, including Coinbase Global Inc., now broadly support the bill after a compromise on stablecoin yields was reached. At the time of writing, BTC was exchanging hands at $62,691.12, up 2% over the last 24 hours.