- Bitcoin’s valuation debate deepens as gold rallies and correlation myths fade
- Bill Miller says Bitcoin remains undervalued despite lagging gold performance
- Market divergence highlights Bitcoin’s independent monetary role and long-term potential
Bitcoin’s struggle to regain the $100,000 level has intensified debate around its role as digital gold.
However, one veteran investor believes the market has misunderstood the comparison entirely. According to Bill Miller IV, Bitcoin’s current valuation fails to reflect its long-term monetary potential. He argues that proper recognition would place Bitcoin near $1.7 million per coin.
Gold’s recent record-breaking performance sharpened scrutiny around Bitcoin’s muted price action. Central banks drove gold higher through aggressive reserve accumulation and geopolitical hedging. At the same time, Bitcoin hovered below $90,000, disappointing traders expecting parallel movement. Critics quickly framed the divergence as proof that the digital gold narrative no longer holds.
Nevertheless, Miller dismissed that conclusion, according to statements he shared publicly, stressing that Bitcoin and gold rarely move in tandem over extended periods. Historical data shows minimal correlation between both assets across the past decade, and because of that, simultaneous rallies should never be considered a benchmark.
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Market Cap Parity Shapes the $1.7M Bitcoin Thesis
Miller’s $1.7 million estimate relies on a straightforward valuation comparison, as gold’s monetary premium dwarfs Bitcoin’s current market capitalization. If Bitcoin absorbed that premium fully, prices would increase roughly 19x from present levels, a framework centered on adoption rather than short-term sentiment.
Importantly, Miller framed Bitcoin as an emerging monetary asset rather than a speculative trade, noting that consolidation often follows major adoption phases. According to him, slower price action can signal structural network strengthening, a process that unfolds independently of gold’s market performance.
Divergence Reinforces Bitcoin’s Independent Role
Significantly, gold’s rally followed defensive behavior by governments and institutions, while Bitcoin reflected tighter liquidity and reduced speculative demand. These opposing drivers created separation rather than confirmation between both assets, which according to Miller supports Bitcoin’s standalone monetary identity.
Additionally, Ark Invest’s Cathie Wood echoed similar views during recent commentary and rejected the idea that Bitcoin merely mirrors gold digitally. According to Wood, Bitcoin remains early in its monetization curve and can function across both risk-on and risk-off environments.
Moreover, Wood argued that Bitcoin represents harder money than gold, citing mining constraints and fixed supply as defining advantages. Those characteristics differentiate Bitcoin from traditional commodities and fiat systems, meaning correlation-based valuation models miss the broader context.
Ultimately, Miller’s perspective reframes the debate around recognition rather than short-term performance and market timing. Bitcoin’s price reflects adoption stages rather than immediate comparisons with gold, while evolving institutional narratives continue shaping long-term expectations.
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