Bitcoin (CRYPTO: BTC) may have fallen nearly 50% from its all-time high, but industry expert main that its long-term investment thesis remains intact.

Who Is Buying Bitcoin?

In an interview with Schwab Network on June 30, Alex Blume, founder and CEO of institutional digital asset manager Two Prime, said Bitcoin’s decline from roughly $127,000 to below $60,000 reflects a difficult period for the cryptocurrency rather than a change in its underlying fundamentals.

He pointed to Strategy (NASDAQ:MSTR) as a major factor weighing on sentiment, arguing that the company’s aggressive financial engineering to accumulate Bitcoin has reached its limits.

Blume said Strategy’s preferred equity products have come under pressure, leaving the company focused on strengthening its U.S. dollar reserves rather than buying additional BTC.

"The question now is who is buying Bitcoin if the largest buyer is effectively sidelined," he said.

He added that momentum-driven investors have largely rotated into sectors such as artificial intelligence and robotics, while long-term BTC holders continue to provide a floor for prices.

Key Catalysts For Revival

Blume identified three potential catalysts that could revive Bitcoin. Over the past month, BTC prices have dropped around 19% dropping below $59,000.

The first is a return of positive price momentum, which he believes would attract traders back into the market.

The second is renewed confidence in Bitcoin’s widely followed four-year cycle, which could become a self-reinforcing narrative if prices begin rising again.

The third, and most significant, is the potential passage of the CLARITY Act, which would establish clearer regulatory boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission while providing guidance for stablecoins and other digital assets.

Beyond Bitcoin, Blume said blockchain adoption is accelerating across traditional finance, with banks embracing stablecoins and major exchanges exploring tokenized equities.

Image: Shutterstock