Bill Miller Says he Hasn’t Sold his Bitcoin, Despite Bear Market

Legendary value investor Bill Miller has HODL’d through Bitcoin’s recent crash despite it reaching price lows unseen since December of 2020. The investor maintains that Bitcoin is fundamentally different from all other cryptocurrencies and that it lacks true competition.

Bitcoin Above All for Bill Miller

In an interview with CNBC on Thursday, Miller said that Bitcoin has correlated with different multiple metrics throughout the years. He currently sees it correlated with “risk-on, risk-off”, an investment setting when price behavior swings with risk tolerance.

Bitcoin has, in fact, seen record high correlations with the S&P 500 Index in recent months. Miller’s analysis also corroborates a Bank of America report from February, indicating that Bitcoin trades more like a risk asset than an inflation hedge.

Yet at a fundamental level, Miller thinks Bitcoin aligns more closely with the latter. He suggested that it would be a good idea for people in inflationary environments, like Russia, to buy in.

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“I haven’t heard a good argument about why you wouldn’t put 1% of your liquid net worth in Bitcoin,” he said. “Anybody can afford to lose 1%, or you shouldn’t be investing.”

The investor made similar comments in March when he claimed that Russia’s 50% currency collapse was bullish for Bitcoin. Due to its uncontrollable nature and fixed supply cap, he joined a chorus of other investors in calling the primary cryptocurrency “digital gold”.

All other crypto assets, by contrast, strike Miller as more like venture investments. “I don’t have the expertise to evaluate them,” he said, adding that he’s comfortable sticking with Bitcoin.

Long Term Investing

Though Miller is yet to sell any of his stashes, he hinted that he may have to in order to meet margin calls. As revealed in January, the investor has 50% of his net worth allocated to Bitcoin, and is leverage trading it. The other half, he states, is an investment in Amazon stock.

“If Bitcoin was in half from here, would I be surprised? No. I would be chagrined, because I own a lot of it, but I wouldn’t be surprised.”

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MicroStrategy CEO Michael Saylor also risks getting margin called on his Silvergate loan if Bitcoin dips to $21,000. However, he clarified that the company can simply shift more Bitcoin collateral into the loan to cover that possibility, down to $3,562.