Bitcoin Could Go To $175,000 Thanks To Global Retirement Accounts Could Drive, Says Bill Miller IV

Bill Miller IV, chairman and CIO of Miller Value Partners, on Wednesday said even minimal exposure from global retirement accounts could significantly boost Bitcoin's BTC/USD valuation, highlighting what he sees as early but growing institutional interest.

What Happened: "There are $60 trillion worth of assets globally in retirement accounts with zero allocation right now to digital assets," Miller said in a CNBC interview. "Every 1% allocation from that $60 trillion adds $30,000 to Bitcoin's price."

He argued that a 2% allocation to Bitcoin would be conservative when compared with traditional holdings in fiat assets.

"All of those assets are currently in a monetary framework whose authorities have told you they want to depreciate it by 2% a year," he said. "So why wouldn't those accounts stake 2% of everything denominated in a melting ice cube and put it into another protocol altogether?"

By Miller's calculation, a 2% allocation from global retirement funds would place Bitcoin near $175,000, more than 50% above current levels.

The veteran investor pointed to early signs of institutional adoption as evidence of Bitcoin's broadening reach.

He cited Norway's Norges Bank Investment Management, the world's largest sovereign wealth fund with nearly $2 trillion in assets, which has been increasing exposure to digital assets, along with Harvard's endowment making initial Bitcoin investments.

"It's still a rounding error for them," Miller said, "but when the world's largest sovereign wealth fund and the world's largest endowment start buying Bitcoin, it opens the door for all the other relevant parties — other endowments, other sovereign wealth funds — to do this in a very interesting way."

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Why It Matters: Further, Miller highlighted the Russell 2000 index's performance last week, where 90% of its constituents advanced on Tuesday, followed by more than 80% on Wednesday.

He described this as a "breadth thrust," an occurrence that he said often aligns with market inflection points.

Miller compared today's environment to the period between 1999 and 2006, when large-cap growth stocks fell 30% while small-cap value stocks nearly tripled, outperforming large growth by about 20% annually.

He said current conditions, low but slightly rising unemployment, easing inflation, and a shift in Federal Reserve leadership, could set the stage for similar outcomes.

"We want to actually own small caps, cyclicals, and you want to be very aggressive here," Miller said, while acknowledging that near-term volatility tied to interest-rate expectations could weigh on small-cap performance.

He also noted concerns about valuations in large-cap technology firms, particularly the so-called "Magnificent Seven."

According to Miller, the group's capital expenditures have climbed sharply, rising from about $100 billion in 2020 to roughly $350 billion last year, representing over 60% of their operating cash flow.

Miller questioned whether such high levels of spending would ultimately deliver the returns investors expect.

"Will all this pay off? Everyone thinks it is… but those are some big spending numbers," he said.

Despite broader skepticism on mega-cap growth, Miller pointed to Alphabet GOOGL as a compelling investment within the AI sector.

He argued that its combination of model development, distribution channels such as YouTube and Search, and additional ventures like Waymo position it strongly, while trading at a discount to peers.

"They are in seven out of 10 people's hands all day every day in the Android operating system. And that's a moat," he said, rejecting the notion that AI developments had eroded Google's long-term advantage.

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