Bill Miller, a famed American investor, fund manager, and philanthropist, is still bullish on Bitcoin despite the recent crypto meltdown that has seen the price of the flagship cryptocurrency plunge by around 75% compared to 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, once the third-largest crypto exchange in the world that filed for bankruptcy in early November. 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 poor price performance could be attributed to raising rates. “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 further noted that he differentiates between Bitcoin, which he sees as a potential store of value like digital gold, and all the other cryptocurrencies. He said other digital assets can be categorized as venture speculation.
He stated that Bitcoin is still up by around 190% compared to its 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.”
Aside from Bitcoin, Miller also disclosed that he owns shares in some of the biggest crypto companies, including cryptocurrency exchange Coinbase and Silvergate Capital, a crypto investment firm. He even claimed that he purchased more Silvergate shares a week ago and plans to buy more Coinbase.
Miller rose to prominence by outperforming the S&P 500 annually from 1991 to 2005. He subsequently served as the chairman and chief investment officer of Miller Value Partners, which had $1.9 billion in assets under management at the end of August 2022.
Miller’s comments come as the bulk majority of digital assets have lost around 70% of their value compared to their all-time highs so far this year amid the recent market downturn.
Bitcoin, the world’s largest crypto exchange, has been hovering around the $17,000 mark since the start of November, which is down by almost 75% compared to its ATH of $68,789.63 recorded in November 2021. Similarly, Ethereum is down by around 75% from its ATH of $4,891.