Bitcoin (CRYPTO: BTC) is showing signs of capitulation as bearish sentiment intensifies, but Bitwise’s Ryan Rasmussen argues that long-term investors are still using the weakness to accumulate.

ETFs And Long-Term Allocation Products

In an interview with Scott Melker on June 25, Rasmussen said Bitcoin’s latest drawdown below $60,000 has revived familiar "Bitcoin is dead" narratives.

He stressed that similar moments have historically appeared near major cycle lows.

Melker pointed to on-chain data showing that Bitcoin supply held at a loss has reached a record 10.83 million BTC, while long-term holders now control 14.8 million coins.

Rasmussen noted these kinds of metrics are "the types of signals you look for in crypto winters" to assess whether the market is approaching a bottom.

Instead, investors remain overly focused on short-term volatility despite the healthy long-term thesis.

He acknowledged that Strategy Inc. (NASDAQ:MSTR) and Michael Saylor may no longer be able to buy Bitcoin at the same pace but said that was always expected as the asset matured.

The next major source of demand, according to Rasmussen, is likely to come from exchange-traded funds and long-term allocation products.

Commenting on the $6 billion in ETF outflows over past 30 days, Ramussen said "Rotations go around in a circle," and capital could return to crypto once momentum improves.

‘Bitcoin Is Dead’ Again

In a separate Yahoo Finance segment, Melker highlighted that Bitcoin has now been declared dead 472 times since tracking began, with fresh bearish commentary spreading across social media.

He cited examples from Dave Portnoy and other prominent accounts questioning whether Bitcoin is heading to zero.

Melker argued that extreme fear has often marked attractive accumulation zones, noting that repeated Bitcoin obituaries have historically appeared near major bottoms rather than tops.

"Don’t get shaken out by Bitcoin touching a price it hit in 2024," Rasmussen commented, adding that the long-term outlook for crypto remains positive.

Image: Shutterstock