Kevin O’Leary says Bitcoin's (CRYPTO: BTC) recent weakness has less to do with fading investor interest and more to do with regulatory uncertainty.

BTC Going “Nowhere” Until CLARITY Act

Appearing on Fox Business on June 10, the O’Leary Ventures chairman said Bitcoin’s decline from its all-time high near $120,000 to around $60,000 has disappointed many investors who expected ETFs and institutional adoption to drive prices higher.

"Bitcoin’s going nowhere until the CLARITY Act becomes law,” O’Leary said.

He added that sovereign wealth funds and institutions are not yet touching Bitcoin as it is not yet law. O'Leary predicts 1% to 3% allocation of sovereign wealth to crypto.

Blockchain Opportunity May Be Bigger Than BTC

O’Leary suggested that the most important investment opportunity may not be Bitcoin itself but the blockchain infrastructure that enterprises eventually adopt.

He noted that stablecoins have already received a regulatory boost through the GENIUS Act and argued that the next phase of adoption could involve widespread use of blockchain technology across corporate America.

For years, companies have discussed moving compliance systems, logistics, inventory management and contracts onto blockchain networks.

O’Leary said that transition has yet to happen at scale. “The S&P 500 has not touched blockchain," he said.

According to O’Leary, once regulatory clarity arrives, one blockchain network could emerge as the preferred enterprise platform across multiple industries.

AI, Data Centers And Digital Infrastructure

Outside of crypto, O’Leary remains highly bullish on artificial intelligence infrastructure. He said demand for data centers continues to outpace supply.

The growth of AI, digital payments and blockchain-based systems will require massive investments in computing infrastructure over the coming years.

“We need all this capacity really fast,” he said.

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