Bill Miller, a legendary investor, believes that when the Federal Reserve stops rising interest rates and starts decreasing them, that will be the spark that will re-ignite the price of Bitcoin (BTC) and drive it higher.
Furthermore, Miller underlined that, while Bitcoin appears erratic, it nevertheless has a place in investing portfolios as a “reasonable guess”:
“By the end of 2020, Bitcoin was valued $5,800. Bitcoin is now worth $17,400. Since then, the market has increased by roughly 70%, while Bitcoin has increased by 190%. If you have a longer time horizon, you should do very well in Bitcoin. It’s not an investment, in my opinion. I’d call it a guess, but it’d be a healthy guess.”
It’s pretty durable.
Given the upheaval in cryptocurrency markets over the last year, the former Legg Mason Capital Management executive feels Bitcoin is still holding up fairly well. With interest rates rising as the Federal Reserve tries to contain inflation, Miller believes that reversing such measures might considerably enhance Bitcoin’s price.
“I’m shocked that Bitcoin isn’t half its current price given the surge produced by the FTX collapse. People are abandoning the area, so it’s astonishing that it’s still hovering around $17,000. However, inflation is under attack, and real interest rates are swiftly rising. I believe Bitcoin will do extremely well if and when the Federal Reserve begins to reverse its policy.”
Positive experience with Coinbase as well.
In addition, despite hitting an all-time low earlier this week, Miller believes Coinbase (COIN) will do quite well:
“I thrive on inactivity in general. I don’t enjoy selling anything until it’s absolutely necessary due to margins. I’ve been doing a lot of Amazon shopping lately. I purchased Silvergate a week ago and intend to purchase more Coinbase.”