Bitcoin comeback sparked in part by AI rotation, says Miller Value Partners' Miller

everything you need. Our best >> BITCOIN SEEING ITS STRONGEST THREE DAY WIN SINCE 2023. FOR MORE ON WHERE IT'S HEADING NOW, LET'S WELCOME IN BILL MILLER THE FOURTH. WELCOME BACK. IT'S GOOD TO HAVE YOU BACK, ESPECIALLY AS WE HAVE THIS TREMENDOUS REBOUND. WHAT DO YOU THINK IT'S ABOUT. >> I THINK CRYPTO IS JUST COMING BACK AFTER SUMMER BREAK SCOTT. THERE'S TWO THINGS BEHIND IT REALLY. THE AI TRADE IS STARTING TO LOSE A LITTLE BIT OF ITS LUSTER AS PEOPLE BECOME CONCERNED AROUND VALUATION AND ROIS THAT MAY NOT BE THERE ON THIS HUGE AMOUNT OF CAPEX. SO LONG DATED THINKERS ARE SHIFTING THEIR FOCUS ELSEWHERE AND NOW TO CRYPTO. AND I THINK THE REAL REASON BEHIND THAT SHIFT, IN ADDITION TO THE CONCERNS AROUND VALUATION, ARE BIG LIQUIDITY INTERVENTIONS ON BEHALF OF GOVERNMENTS AROUND THE GLOBE IN EXCHANGE TO COUNTERACT BIG STRUCTURAL ISSUES. SO IF YOU LOOK AT WHAT HAPPENED AT THE END OF JULY, JAPAN INTERVENED IN IN IN CONJUNCTION WITH THE US TO SUPPORT THE YEN. AND THEN LAST WEEK, YOU HAD A BIG ANNOUNCEMENT WHERE TREASURY SAID THEY WERE GOING TO DOUBLE THEIR PURCHASES OF LONG DATED FIXED INCOME. AND IF YOU THINK ABOUT WHAT THAT REPRESENTS, IT'S AGAIN, POLICY MAKERS TRYING TO PRETEND THAT BIG STRUCTURAL IMBALANCES THAT HAVE BEEN BUILDING UP FOR LONG PERIODS OF TIME ARE NOT HAPPENING. YOU LOOK AT THE IMPETUS FOR BITCOIN. IT WAS THE GLOBAL FINANCIAL CRISIS WHEN POLICYMAKERS LOCKED ARMS AND SAID, OH, THIS IS CRAZY STRUCTURAL STUFF. BREAKING ISN'T HAPPENING. SO AGAIN, IT'S HAPPENING AGAIN. PEOPLE ARE SHIFTING THEIR THEIR POLICIES AT THE MARGIN. AND EXTRAPOLATING THAT. AND BITCOIN INVESTORS ARE GOING, OKAY, WHERE DOES THIS END? IT PROBABLY ENDS WITH MORE INTERVENTION. SO I THINK THAT'S WHAT KICKED THIS BIG LIQUIDATION OFF LAST WEEK. IT WAS THE BIGGEST SHORT LIQUIDATION IN CRYPTO IN THE PAST FIVE YEARS. AND THE FUNDAMENTAL CASE IS AS GOOD AS EVER. SCOTT. IF YOU LOOK AT THE BUDGET DEFICIT THIS YEAR IN THE UNITED STATES AT 1.8 TRILLION, THE ENTIRE MARKET CAP OF BITCOIN IS SMALLER THAN THE DOLLARS THAT HAVE TO BE INVENTED FROM JUST THIS YEAR'S BEHAVIOR ALONE. SO THERE'S A BIG STRUCTURAL DEMAND HERE AND A BIG RUNWAY, I THINK, AHEAD OF US. >> WELL, I MEAN, THE NATIONAL DEBT HAS BEEN THE NATIONAL DEBT, RIGHT? I MEAN, YOU KNOW, GETTING TO $40 TRILLION MAY BE A NICE BIG NEW, NOT NICE EVEN. BUT YOU KNOW WHAT I'M SAYING ABOUT A NICE, BIGGER ROUND NUMBER. BUT $30 TRILLION IS STILL A TOO BIG A NUMBER. AND, YOU KNOW, THERE WERE TIMES IN THAT STRETCH THAT BITCOIN HAD TROUBLE. SO WHY IS BITCOIN AND THOSE INVESTORS JUST WAKING UP NOW TO A $40 TRILLION NUMBER. >> WELL I THINK IT'S THE CHANGE AT THE MARGIN POTENTIALLY OF TREASURY. YOU KNOW BECOMING MORE ACTIVE ON THE MONETARY POLICY FRONT. EVEN THOUGH IT'S GOING TO BE BUDGET NEUTRAL. THEY ALREADY HAVE THE FUNDS TO DO IT. BUT I THINK YOU HAVE TO ZOOM OUT, SCOTT. AND THERE'S A LOT OF VOLATILITY IN BITCOIN. BUT THE LONG TERM STRUCTURAL ISSUE REMAINS, WHICH IS FIAT. GOVERNMENTS AS A WHOLE ARE NOT ALL THAT ACCOUNTABLE. THERE ARE MORE ACCOUNTABLE WAYS OF KEEPING TRACK OF CAPITAL, MORE TRANSPARENT WAYS OF THINKING ABOUT IT. AND PEOPLE CONTINUE TO COME AROUND TO THAT VIEW OVER AND OVER AND OVER AGAIN. >> I MEAN, THE OTHER THING IS, IS WHEN YOU WERE SORT OF DESCRIBING SOME OF THE MECHANISMS FOR THE FOR THE BOUNCE. YOU SAID A BIG AND YOU USED THE WORD. AND I FELT LIKE, AS YOU SAID IT, YOU WERE CAREFUL TO USE THAT BIG ANNOUNCEMENT ON, ON BUYBACK ACTION FROM THE TREASURY. THEY HAVEN'T BOUGHT A SINGLE BOND YET, OBVIOUSLY. BUT WHAT YOU'RE SAYING IS THE ANNOUNCEMENT OF ACTION ALONE WAS ENOUGH TO GIVE BITCOIN A BOOST. AND THE IDEA THAT THIS IS ONLY THE BEGINNING, THAT WHEN ACTION IS ACTUALLY WHEN WORDS ARE TURNED INTO ACTION. AND THEN OUR REPORTING TODAY SUGGESTING THAT, YOU KNOW, YOU COULD USE THE TREASURY GENERAL ACCOUNT, THAT THIS IS JUST STARTING. >> YEAH, IT'S BEEN JUST STARTING FOR A CENTURY OR SO. SCOTT, IN TERMS OF THE OVERALL BEHAVIOR. SO WE'RE ON THE SAME PAGE. >> WHAT ABOUT THE MARKET ITSELF? I MEAN, HOW DO YOU FEEL ABOUT THE THE RELATIONSHIP BETWEEN RISING YIELDS AND WHERE THE MARKET IS CURRENTLY TRADING. >> YOU MEAN THE BITCOIN MARKET AND. >> THE REGULAR STOCK MARKET? >> OH OKAY. SO THE STOCK MARKET I MEAN IF YOU GO BACK IN HISTORY, 5% IS NOT EXACTLY A HERCULEAN RATE OF INTEREST ON CAPITAL. SO I MEAN, 16 OR 17, 19 YEARS AGO, 30 YEARS, 30 YEAR RATES WERE AT THIS LEVEL TWO ECONOMY WAS GOING REALLY WELL. SO I DON'T THINK THAT RATES AT THIS LEVEL ARE, YOU KNOW, SCARY FOR THE ECONOMY MOVING FORWARD. THERE'S A REAL DEMAND FOR CAPITAL. THERE'S A REAL DEMAND FOR MORTGAGES. AND SO IF YOU LOOK AT REAL RATES, THEY'RE AS HIGH AS THEY'VE BEEN IN 20 PLUS YEARS. THAT'S ENORMOUSLY BULLISH FOR THE ECONOMY. IT SUPPORTS THE ROTATION STORY INTO SMALLER CAPS WITH LOWER VALUATIONS. SO WE'RE STILL OPTIMISTIC. >> SURE. BUT IT'S NOT THE TEN YEAR AT 5%. THAT'S THE THE HANG UP POTENTIALLY. IT'S THE FACT THAT IT WENT FROM POINT A TO POINT B, WHICH IS 5% IN A REASONABLY SHORT PERIOD OF TIME. THAT'S THE UNSETTLING NATURE OF IT, NOT THE ABSOLUTE LEVEL. >> THE FAIR POINT. AND I THINK IT'S IMPORTANT TO QUESTION WHAT'S CAUSING THOSE DEGREE OF MOVES. AND SOME WOULD ARGUE BITCOINERS, ESPECIALLY THAT OVER, YOU KNOW, TOO MUCH GOVERNMENT INTERVENTION IN THE PRICING OF MONEY IS IS BEHIND A LOT OF