Miller: Worsening Fiscal Conditions Boost Case for Bitcoin

Legendary investor Bill Miller IV has reaffirmed his bullish stance on Bitcoin, stating that he's 'never been more bullish' on the asset. Despite Bitcoin's market cap sitting roughly where it did at the last cycle's peak, Miller believes the global fiscal situation has worsened significantly, creating a wider gap between price and fair value.

According to Miller, the current market dynamics are driven by capital governance, which he frames as a denominator for capital rather than an asset to be valued. He compares Bitcoin's market cap to the US deficit, which is roughly the same size as Bitcoin's entire market cap, and argues that this disparity indicates fair value.

Miller also addresses gold's outperformance in recent times, attributing it to 'narrative lag' and a delayed recognition of its true value. He notes that global liquidity flows have shifted from Japan and US treasuries, and discusses the impact of the Fed's 25 basis point hike on energy prices and inflation.