Miller: Crypto Resurgence Led by Government Interventions

Bill Miller IV, son of renowned investment manager Bill Miller III, recently spoke about the resurgence of Bitcoin's price. Miller stated that crypto is 'just coming back after summer break' as investors rotate out of an AI trade losing its luster due to valuation and return concerns.

The AI trade was seen starting to lose its appeal as investors questioned whether the returns justified the capital being spent. This led long-term thinkers to look at crypto, according to Miller.

Miller attributed the bigger driver behind the rally to government liquidity intervention. He cited Japan's cooperation with the U.S. to prop up the yen and the Treasury's announcement to double its purchases of long-dated fixed income as key factors.

The entire market cap of Bitcoin is less than the dollars needed to cover one year's worth, Miller pointed out, emphasizing that this was a structural problem with a long runway ahead. He also noted that investors are extrapolating and concluding that it probably ends with more intervention.