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Legendary investor Bill Miller says that one catalyst is likely going to help Bitcoin (BTC) start performing well again.
In a new interview with Barrons, Miller says that Bitcoin, while volatile, has a place in investment portfolios as a “sound speculation.”
“At the market low of 2020, Bitcoin was $5,800. Bitcoin is now $17,400. Roughly since then, the market is up 70%, and Bitcoin is up 190%. 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.”
The former Legg Mason Capital Management executive says considering the turmoil in crypto markets over the past year, he thinks Bitcoin is still holding up rather well. With interest rates trending higher as the Federal Reserve attempts to squash inflation, Miller says that a reversal in such policies could be the spark that BTC needs to turn around.
“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. But inflation is being attacked and real rates are rising rapidly. I would expect that if and when the Federal Reserve begins to pivot [toward easier monetary policy], Bitcoin would do quite well.”
Besides, Bitcoin, Miller also says he’s bullish on Coinbase (COIN), which reached an all-time low earlier this week.
“I generally thrive on inaction. I don’t like to sell anything unless I’m forced to with margin calls. I recently bought more Amazon. I bought Silvergate a week ago and expect to buy more Coinbase.”