Bill Miller, a well-known American investor, fund manager, and philanthropist, remains bullish on Bitcoin despite the recent cryptocurrency crash that saw its price drop by about 75% from its all-time high.
In an interview with Barron's on Thursday, Miller said he is surprised Bitcoin has not lost more value amid the recent collapse of FTX, a crypto exchange that filed for bankruptcy in early November, according to Cryptonews. He said:
“I'm surprised Bitcoin isn't at half of its current price given the FTX implosion. People have fled the space, so the fact that it's still hanging in there at $17,000 is pretty remarkable.”
He mentioned that part of Bitcoin's bad price action could be due to rate hikes. “I would expect that if and when the Federal Reserve begins to pivot [toward easier monetary policy], Bitcoin would do quite well,” he added.
Miller also noted that he makes a distinction between Bitcoin, which he sees as a potential store of value like digital gold, and all other cryptocurrencies. He said other digital assets could be categorized as venture speculation.
He stated that Bitcoin is still up about 190% from the 2020 low of $5,800, arguing that Bitcoin has performed quite well overall. He added:
“If anyone has a time horizon of longer than a year, you should do quite well in Bitcoin. I wouldn't call that an investment. I would call it a speculation, but I would call it a sound speculation."
In addition to Bitcoin, Miller also revealed that he owns shares in some of the largest crypto companies, including cryptocurrency exchange Coinbase and investment firm Silvergate Capital. He even claimed to have bought more Silvergate shares a week ago and plans to buy more Coinbase.
Miller's comments come as the bulk of digital assets have lost this year about 70% of their value from their all-time highs, amid the recent market downturn. Bitcoin, the world's largest cryptocurrency, has been hovering around the $17,000 mark since early November, almost 75% less than its $68,789 ATH registered in November 2021.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.