Bitcoin has had an incredible few weeks, adding a staggering 35% over the last month and muscling back into a bull run that could be just getting started.
The bitcoin price fell to under $4,000 per bitcoin in March as the coronavirus pandemic sparked panic among investors but endorsements from high-profile investors and Wall Street giants helped bitcoin make a stunning rebound, hitting $15,000 per bitcoin last week.
Now, Wall Street legend Bill Miller, the founder of investment manager Miller Value Partners, has said he “strongly” recommends bitcoin at current prices—branding it the “single best performing asset class” in the last year, five-year, and 10-year periods.
“[Bitcoin has] been very volatile, but I think right now it’s staying power gets better every day,” Miller told CNBC. “I think the risks of bitcoin going to zero are much, much lower than they’ve ever been before.”
Bitcoin has found support through 2020 due to increased interest in digital assets from Wall Street and as a hedge against the inflation that some big-name investors think is coming as a result of unprecedented coronavirus spending and money printing—furthering its reputation as “digital gold.”
“I think every major bank, every major investment bank, every major high net worth firm is going to eventually have some exposure to bitcoin or what’s like it, which is gold or some kind of commodities,” Miller said, adding he thinks inflation is “coming back” due to the Federal Reserve “gunning the money supply.”
Earlier this year, bitcoin went through a scheduled supply cut, known as a halving, putting it at odds with central bank quantitative easing and stimulus measures.
“The bitcoin story is very easy, it’s supply and demand,” Miller said. “Bitcoin’s supply is growing at around 2.5% a year, and the demand is growing faster than that and there’s going to be a fixed number of them.”
Miller’s comments echo those made by Wall Street legend and billionaire Paul Tudor Jones last month, who said buying bitcoin is “like investing with Steve Jobs and Apple
Jones sent shockwaves through the financial world in May when he compared bitcoin to gold during the 1970s and said his BVI Global Fund, with assets worth $22 billion under management, could invest as much as “a low single-digit percentage exposure percentage” in bitcoin futures.