As geopolitical tensions in the Middle East escalate, the world’s largest hedge fund, Bridgewater Associates, founded by Ray Dalio, once again endorses gold and questions Bitcoin. However, market movements at the same time offer a thought-provoking response.
On Tuesday, Ray Dalio, known as the “Crocodile King,” stated on the popular podcast “All-In Podcast” that investors should no longer compare Bitcoin to gold. He listed three major issues with Bitcoin: “lack of central bank backing,” “no privacy,” and “threats from quantum computing,” reaffirming that “gold is the only true god.”
He said, “There is only one gold in this world,” and “gold is the most mature currency,” and it is also the second-largest reserve currency held by central banks worldwide.
However, the market delivered a loud slap to these experts. On the day Dalio made these remarks, gold prices plummeted by $168 to $5,128 per ounce, a 3% drop in a single day; in contrast, Bitcoin only saw a slight correction of 0.7%, remaining steady around $68,700.
Currently, the US-Iran conflict has entered its fifth day, and the market is in a state of heightened geopolitical anxiety. Dalio has long advocated that gold is the strongest shield in times of chaos, but ironically, during the most critical moments for safe-haven assets, gold’s decline has been even more severe than cryptocurrencies.
In fact, the decoupling of Bitcoin and gold is not new. From July to early October last year, their prices moved in sync until a $20 billion liquidation wave in the crypto market caused their paths to diverge.
Since the October peak, Bitcoin has fallen more than 45%, while during the same period, gold surged by up to 30%, breaking through the $5,100 level.
Looking at the market volatility during this geopolitical conflict: initially, gold prices did spike on Saturday when military strikes began, but as the conflict spread and focus shifted to concerns over oil supply disruptions, gold lost all gains. Meanwhile, Bitcoin, which experienced panic selling on Saturday, rebounded strongly after the death of Iran’s Supreme Leader Khamenei was announced on Sunday.
This series of intense fluctuations confirms a harsh reality: no asset can perfectly serve as a “safe haven” this time. Both assets faced significant volatility, but Bitcoin’s swings were relatively smaller.
Honestly, Dalio’s skepticism of cryptocurrencies is nothing new. He repeatedly emphasizes Bitcoin’s “transparency” issues, pointing out that “every transaction can be monitored, and possibly manipulated.” He highly doubts how central banks could accumulate large amounts of an asset that operates on a public ledger; at the same time, he again highlights quantum computing as a long-term existential threat to Bitcoin.
However, Dalio is not entirely bearish on Bitcoin. For diversification, he still holds about 1% of Bitcoin in his personal portfolio; he even boldly suggested last July that, given the growing US debt crisis, investors should allocate 15% of their funds to Bitcoin or gold, calling it the “best risk-reward” choice.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Sonic Price May Experience Technical Reversal: RSI Bullish Divergence Emerges, $0.03 Becomes a Key Support Level
Sonic token recently found support at $0.03, and the RSI shows a bullish divergence, indicating weakening downside momentum. If the support remains effective, the price could rebound to $0.04. Both technical and fundamental analyses show positive signals, but if the key support is broken, bears may regain control.
GateNews25m ago
Ethereum funding rate turns negative! ETF outflows, staking yields are lower than stablecoins
Ethereum perpetual contract funding rates turn negative, indicating increased demand for shorts and a clear market bearish sentiment. Institutional demand remains weak, partly due to relatively low staking yields and a lack of sustained capital inflows. On-chain data and technical developments have failed to boost confidence, but Ethereum's DeFi ecosystem still maintains a strong moat. It is necessary to observe a rebound in funding rates and improvements in transaction fee revenue to determine the future market trend.
MarketWhisper34m ago
Bitcoin stabilizes above $70,000, IEA may release the largest-ever crude oil reserves, global risk asset sentiment improves
Bitcoin recently broke through $70,000 again, influenced by changes in the energy market. Its price once reached $71,612 before falling back to $70,036. The market sentiment is related to discussions with the International Energy Agency about releasing strategic oil reserves, and the decline in Brent crude oil prices is seen as a signal to reduce inflation pressure. The market is focused on the Federal Reserve policy meeting, with expectations that if oil prices remain below $90, it will create room for interest rate cuts.
GateNews38m ago
Bitcoin derivatives market turns bullish, traders bet on BTC surging past $80,000
Bitcoin market sentiment is improving, with more traders expecting the price to break above $80,000 in the coming months. The options market signals a bullish bias. Currently, Bitcoin is trading near $70,000, and analysts believe that if the bullish sentiment continues, a new directional move may emerge in the future.
GateNews40m ago
XRP Ledger daily trading volume soars to 2.7 million transactions, RWA enthusiasm heats up, but XRP price remains trapped in the $1.34—$1.44 range
XRP price has recently been volatile, staying between $1.34 and $1.44. However, XRP Ledger transaction activity has increased, with a daily trading volume of 2.7 million transactions, mainly driven by real-world asset tokenization projects. Analysts point out that the market is in a consolidation phase, with a focus on the stability of the $1.34-$1.35 support level. If this support holds, a breakout above $1.44 could be possible.
GateNews41m ago
Ethereum network activity reaches a new all-time high, but ETH price has fallen 30% over 6 months, ranking third in fee revenue.
Ethereum network activity reaches a new all-time high, with multiple indicators showing a significant increase in daily active addresses and smart contract calls. However, ETH price has fallen about 30% over the past six months, indicating a net capital outflow. Analysis suggests that capital flows have a greater impact on price. Despite Ethereum hosting a large amount of stablecoins, its value capture has not kept pace with the growth in network usage.
GateNews1h ago
