Bitcoin’s price climbed to over $69,000 on Wednesday morning, up nearly 2% in the last 24 hours, and gold prices climbed over 1%.
- Ray Dalio stated that Bitcoin’s scale makes it relatively “small” and controllable compared with traditional stores of value.
- He noted privacy concerns, regulatory risks, and technological threats such as quantum computing.
- Dalio also said that Bitcoin often shows a high correlation with technology stocks, limiting its role as a safe-haven asset.
Bridgewater Associates founder Ray Dalio said that while “a lot of attention” has been given to Bitcoin (BTC), the market for the apex cryptocurrency is still “relatively small” when compared to gold.
“It's a relatively small market that's a relatively controllable market,” he said during the All-In podcast. “A lot of attention has been given to Bitcoin, but as a money, it's small in relationship to gold.”
Dalio also noted that Bitcoin has limitations, such as privacy and regulation risks, and acts more like a risky tech asset than stable money. His comments come as Bitcoin’s price climbed over $69,000 on Wednesday morning, up 1.9% in the last 24 hours. On Stocktwits, retail sentiment around the apex cryptocurrency dipped to ‘bullish’ from ‘extremely bullish’ territory over the past day.
The SPDR Gold Shares ETF (GLD) climbed 1.17% in overnight trade after falling 4.46% during the regular session as gold prices climbed back up to around $5,150 from lows of $5,000. Retail sentiment around GLD on Stocktwits climbed to ‘bullish’ from ‘neutral’ territory over the past day.
Bitcoin Isn’t Fully Private
Dalio stated that Bitcoin transactions can be tracked, the government can monitor them, and possibly control them. He added that, for those reasons, central banks aren’t likely to purchase Bitcoin. The billionaire also noted that there is a technological risk facing Bitcoin with developments in quantum computing that could be a threat.
In terms of holding Bitcoin in one’s portfolio, Dalio said that exposure depends on what other assets an investor is holding. “It tends to have a pretty high correlation with the tech stocks. So from an ownership [point of view], supply demand is affected if somebody gets squeezed in one thing, they sell whatever else they have,” he said.
Dalio has earlier disclosed that he owns some Bitcoin and hailed the cryptocurrency as “one hell of an invention.” However, he has always maintained that Bitcoin has a long way to go before its treated as money or a safe haven asset.
Read also: KOSPI, S&P 500, Gold Sink On US-Iran Tensions, But Bitcoin Holds $68K Floor
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
