Bitcoin is rebounding this year, with prices hovering above $ 41,000 after briefly dropping to their lowest level since September 2021.
The drop comes as investors worry about rising bond yields and the Federal Reserve potentially accelerating the timing of its interest rate hikes in 2022. crypto prices.
CRYPTO-CURRENCY PRICES FUCK FOR THE NIGHT TO $ 41,900
Despite the Bitcoin crisis, legendary investor and founder and chief investment officer of Miller Value Partners Bill Miller told Wealthtrack on Friday that he had allocated 50% of his net worth to the world’s largest cryptocurrency and related investments, in particular Stronghold Digital Mining and Michael Saylor’s MicroStrategy. He thinks individual investors should look at Bitcoin as an insurance policy and call it “digital gold.”
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“I think the average investor should be asking, ‘What do you have in your portfolio that has that kind of track record? Number 1 is very, very underpenetrated, can provide insurance against another can provide, and can go up ten times or fifty times, ”Miller explained.“ The answer is: nothing. “
Miller bought his first Bitcoin in 2014 when it was trading around $ 200 per coin and bought “a little more overtime” when it turned into $ 500. It then stopped to buy more until it started to drop from around $ 66,000 last year to $ 30,000. He said his optimism was due to “a lot more people using it now” and “a lot more money coming from the venture capital world.” As for the rest of his net worth, almost everything else is in the Amazon.
Galaxy Digital CEO Mike Novogratz tweeted Monday that Bitcoin is expected to hold steady at current levels, but warned crypto investors to keep a close eye on the markets.
“Crypto at levels that ‘should’ hold, but if the Nasdaq rolls we will see more sales,” he said. “The shorts on stocks and rates are justified. We’re in the ‘adult-only swim’ zone.”
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Meanwhile, Euro Pacific Capital chief strategist and CEO Peter Schiff says a “terminal collapse” for Bitcoin is inevitable due to the fact that it has “no underlying value to support its price”.
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The chairman of the Bitcoin foundation, Brock Pierce, told FOX Business he didn’t expect the market weakness to continue much more, stressing that investors are “at a point of extreme fear.”
“Historically, markets have rebounded when sentiment was this low,” added Pierce.
Bitcoin, which hit an all-time high of $ 69,990 in November, is down around 9% year-to-date. Meanwhile, rivals Ethereum and Dogecoin are also experiencing volatility.