Miller considers that Bitcoin is secure and advised the community not to withdraw as the drop in its price is something normal. He was initially skeptical about Bitcoin, but he has been supporting it since the current global economic crisis started.
The recent drop in the price of Bitcoin led many investors to share negative thoughts about its future. However, Bitcoin proponent Bill Miller showed his support for the cryptocurrency in an interview for CNBC.
Miller commented that Bitcoin is secure regardless of its current price and advised the community not to withdraw. He noted that events like the recent drop in the price of the pioneering cryptocurrency are something normal. Furthermore, he said that investors should find it more attractive as its value decreased significantly.
The founder of investment management firm Miller Value Partners admitted that he does not normally talk about the value of Bitcoin. However, now the market is under great pressure due to obstacles that used to be quite unusual.
Bitcoin and the Other Cryptocurrencies on the Market Collapsed
On May 19th, the cryptocurrency market returned to the high volatility that made it famous. The prices of major cryptocurrencies dropped but they recovered some of the loss on the same day.
In addition to the high volatility, there were also opinions from big investors who said that it was not worth investing in the sector. However, other renowned investors took advantage of the moment of volatility to justify the belief in digital assets.
Bill Miller’s Position on Bitcoin in the Past and Now
Although Bill Miller was initially skeptical about Bitcoin, he has recently been supporting the first cryptocurrency on the market. That has happened since the COVID-19 pandemic caused the current global economic crisis.
In 2020, Miller highlighted that institutional and corporate demand for Bitcoin is growing faster than the supply of the crypto asset. He also predicted that major banks would own a portion of the cryptocurrency. Likewise, he noted that Bitcoin has outperformed all major asset classes over the past 10 years.
The American philanthropist also opposed Warren Buffett, who compared Bitcoin to “rat poison”. In this regard, he said that Buffet could be right as Bitcoin is the poison to kill the rat called “cash”.
Miller noted that the fall in the price of Bitcoin could have “extreme consequences” for the financial world. However, he is confident that it will reach its previous levels very soon and calm will return.
He said that the current movement of Bitcoin can also be extreme for the stock market. However, he explained that it is a routine pullback for the main cryptocurrency on the market. Some analysts have also mentioned that Bitcoin suffered numerous drops during its huge 2017 bullish market.
Another billionaire who spoke in favor of cryptocurrencies was Michael Novogratz from Galaxy Digital. Regarding the drop in the price of Bitcoin, he told CNBC that Bitcoin could take a while to recover. In this regard, he agrees with the opinion of renowned analyst Willy Woo, who believes that Bitcoin will recover “within several weeks.”
Novogratz also highlighted that the cryptocurrency market is undergoing capitulation. This is a pessimistic scenario where investors get rid of their positions and sell their crypto assets near their lowest value.
By Alexander Salazar
