Bitcoin Cannot Become Bigger than Gold: Ray Dalio
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Founder of Bridgewater Associates, Ray Dalio, recently shared his thoughts on how high he believes Bitcoin (BTC) could climb in an interview with Lex Friedman last Saturday.
The Bridgewater founder currently serves as the company’s Associates’ chairman and co-chief investment officer. The firm’s clients include endowments, governments, foundations, pensions, and sovereign wealth funds.
At the interview, the host asked Dalio if he thinks Bitcoin could rise as high as $1 million in price. Dalio dismissed this, asserting that he does not believe it is possible. The billionaire explained that: “The way I look at it is there’s a certain amount of it, and there is a certain amount of gold.” He added that he uses gold as a benchmark, noting that Bitcoin’s market capitalization is currently around $1 trillion while that of the entire market is about $2.3 trillion.
Ray Dalio also noted that: “If you take the amount of money that is in gold that is not used for jewelry purposes and not used by central banks—and I assume bitcoin won’t be used for jewelry purposes or central bank purposes—that amount of gold is about $5 trillion,” adding that “So right now if you were to have a portfolio that has gold and …bitcoin, it’s worth about 20% of the value of gold.”
Key Bitcoin Levels to Watch — December 28
BTC met some intense resistance at the $51.4K pivot top and has recorded a sharp correction, following a prolonged consolidation around that area. The benchmark cryptocurrency now rapidly approaches the $48.5K support as bulls lose control over the market.
That said, a price sighting at $48.5K could warrant additional correction to the $48K psychological level. However, I expect the daily 200 SMA line at that level to prevent any sustained bearish move and repel the price back into $50K territory. Nonetheless, trading volume as momentum remains considerably low amid the holidays, which should reduce sharp price movements.
Meanwhile, my resistance levels are at $49,500, $50,000, and $50,500, and my key support levels are at $48,500, $48,000, and $47,000.
Total Market Capitalization: $2.30 trillion
Bitcoin Market Capitalization: $926.5 trillion
Bitcoin Dominance: 40.3%
Market Rank: #1
