Bitcoin is rebounding this year, with prices hovering above $ 41,000 after briefly falling to their lowest level since September 2021.
The slump comes amid investor concerns over rising bond yields and concerns that the Federal Reserve may accelerate the timing of its rate hikes in 2022. Additionally, a Bitcoin mining outage caused by an internet shutdown in Kazakhstan over the weekend has also impacted crypto prices.
CRYPTO CURRENCY RATES LOWER OVERNIGHT AT $ 41,900
Despite Bitcoin’s slump, legendary investor and founder of Miller Value Partners and chief investment officer Bill Miller told Wealthtrack on Friday that he had invested 50% of his net worth in the world’s largest cryptocurrency and related investments, including Stronghold Digital Mining and Michael Saylor’s MicroStrategy. He believes that individual investors should view Bitcoin as an insurance policy and called it “digital gold”.
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“I think the average investor should be asking,” What do you have in your portfolio that has such a track record – # 1 is very, very poorly penetrated, can offer a financial catastrophe insurance service that no one else can and cannot provide go up ten or fifty times, “explained Miller.” The answer is nothing. “
Miller bought his first bitcoin in 2014 when it was trading around $ 200 per coin, and bought “a bit more overtime” when it hit $ 500. It then paused to buy more until it fell from around $ 66,000 last year to the $ 30,000 area. He stressed that his bullish stance 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 all of the rest is on Amazon.
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Galaxy Digital CEO Mike Novogratz tweeted on Monday that Bitcoin should stay at its current levels, but warned crypto investors to keep a close eye on the markets.
“Crypto is at levels that should hold, but if the Nasdaq rolls around we will see more sales,” he said. “Both equity and interest rate shorts are justified. We are in the adult-only zone.”
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Meanwhile, Euro Pacific Capital’s chief strategist and CEO Peter Schiff argues that a “terminal collapse” is inevitable for Bitcoin as Bitcoin “has no underlying value to support its price”.
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Bitcoin Foundation chairman Brock Pierce told FOX Business that he did not expect the market’s weakness to last much longer and stressed that investors were “at a point of extreme fear.”
“Historically, markets have rallied when sentiment was so low,” added Pierce.
Bitcoin, which hit an all-time high of $ 69,990 in November, is down about 9% since the start of the year. Meanwhile, rivals Ethereum and Dogecoin are also experiencing volatility.