The legendary investor, Bill Miller, expressed the opinion that when the FED stops raising interest rates and starts lowering them, then this will be the spark that will reignite the price of Bitcoin (BTC) and drive it up.
Furthermore, Miller stressed that Bitcoin, although presented as volatile, still has a place in investment portfolios as a “correct guess”:
“At the low of the 2020 market Bitcoin was worth $5,800. Bitcoin is now $17,400. Wholesale since then, the market has gone up 70% and Bitcoin has risen 190%. If one has a time horizon longer than a year, one should do very well in Bitcoin. I wouldn’t call it an investment. I would call it speculation, but I would call it healthy speculation.”
It’s holding up pretty well
The former Legg Mason Capital Management executive pointed out that considering the turmoil in the cryptocurrency markets over the past year, he believes Bitcoin is still holding up pretty well. With interest rates rising as the Federal Reserve attempts to stifle inflation, Miller notes that a reversal of such policies could significantly boost the price of Bitcoin.
“I am surprised that Bitcoin is not at half its current price, given the boom caused by the FTX collapse. People are leaving the space, so the fact that it’s still hovering around $17,000 is quite remarkable. But inflation is under attack and real interest rates are rising rapidly. I would expect that if and when the Federal Reserve starts reversing its policy, Bitcoin will do very well.”
Positive and with Coinbase
Besides, Miller expressed his belief that Coinbase (COIN) will also do very well, despite hitting an all-time low earlier this week:
“I generally thrive on inertia. I don’t like to sell anything unless I have to due to margins. I recently bought more Amazon. I bought Silvergate a week ago and I expect to buy more Coinbase.”
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