At the time of the disastrous speech, following the collapse of the FTX, optimism is not on the agenda of investors. Nevertheless, legendary investor Bill Miller claims that a catalyst is likely to allow bitcoin (BTC) to start performing well again. By combining fundamental analysis and technical analysis, the investor is positive about the future of the bitcoin price.
bitcoin resistance
In an interview with Barrons, Miller says that despite bitcoin’s significant volatility, this asset has a place in investment portfolios. Regarding bitcoin, he refutes the qualification of investment. He defines it as a speculative asset, adding that it is called healthy speculation.
He notes that at the bottom of the market in 2020, bitcoin was at $5,800. Bitcoin is now at $17,400. In sum, since then, the cryptocurrency market has grown by 70% and bitcoin by 190%. He notes that an investor with a time horizon longer than a year is likely to do quite well with bitcoin.
The resistance of bitcoin (BTC)
The former Legg Mason Capital Management executive says that given the turmoil in the crypto market over the past year, bitcoin is holding up pretty well. To counter inflation, interest rates tend to rise under the guidance of the US Federal Reserve. Given this fact, Miller sees a reversal of these policies as the spark BTC needs to turn around.
He says he’s surprised bitcoin isn’t at half its current price given the implosion of FTX. Admittedly, a number of investors have shunned this space, so a hold at $17,000 is quite remarkable. Already during inflation with real rates rising rapidly, it is possible to hope for a turnaround in the markets. If the Federal Reserve begins to pivot toward looser monetary policy, he says he expects bitcoin to do pretty well.
Besides bitcoin, Miller also explained that he is bullish on Coinbase (COIN), which hit an all-time low earlier this week.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
