Despite Thursday’s carnage on the US stock market, the price of bitcoin (BTC) remained stable. The unanticipated breakthrough of BTC last week led to a rally to almost $18,357 before a severe fall at the end of the week. In the end, BTC ended the week at $16,781. At the time of writing, Bitcoin was trading at $16,843 and was up by more than one percent.
According to investor Bill Miller, one catalyst will probably help Bitcoin (BTC) to reverse and perform better. Miller said that despite its volatility, Bitcoin may be included in investment portfolios as a “sound speculation”.
In a recent interview with Barrons, he recalled that Bitcoin was $5,800 at the market low in 2020. The price of one bitcoin is currently roughly $17,400. Since then, Bitcoin has increased by 190%, and the market has gained by 70%.
He added, “If anyone has a time horizon of longer than a year, you should do quite well in Bitcoin. I wouldn’t call that an investment. I would call it speculation, but I would call it sound speculation.”
Despite the upheaval in the cryptocurrency markets over the past year, Miller believes Bitcoin is still holding up well. Miller said that a change in the policies might be the catalyst that turns BTC around. Interest rates are rising as the Federal Reserve works to combat inflation.
“I’m surprised Bitcoin isn’t at half of its current price given the FTX implosion. People have fled the space, so the fact that it’s still hanging in there at $17,000 is pretty remarkable,” he added.
The upcoming weekend falls on the same day as the Christmas break. One might anticipate that volumes will be even lower throughout this weekend if they are already low on typical weekends. Will the market catastrophe once again shake the entire industry?