Billionaire Ray Dalio says regulators will ‘kill’ Bitcoin if it becomes really successful

"Bitcoin, bitcoin coin, physical bitcoin, bitcoin photo" by antanacoins (licensed under CC BY-SA 2.0)
“Bitcoin, bitcoin coin, physical bitcoin, bitcoin photo” by antanacoins (licensed under CC BY-SA 2.0)

Key Takeaways:

  • Billionaire Ray Dalio said regulators would take control of Bitcoin if it gained mainstream success.
  • However, the billionaire believes Bitcoin makes a good cash alternative.
  • In other news, Bitcoin plotted a Golden Cross on Sept 13.

NEW DELHI (CoinChapter.com) — Billionaire Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, believes that Bitcoin’s mainstream success, when it comes, might be a bane for the cryptocurrency. The investor and hedge fund manager believe that governments would ultimately neutralize Bitcoin using regulations when the cryptocurrency gains mainstream adoption.

In an interview with CNBC, Mr. Dalio repeated the comments he made in the past that governments can undercut the growth of the nascent cryptocurrency market if it poses a threat to conventional markets and central banks.

Meanwhile, Bitcoin (BTC) prices gained 10.1% from Sept 13’s low of $43,808 to Sept 16’s high of $48,761, after BTC’s short and long-term moving averages charted a golden cross on Sept 13.

What Ray Dalio Said

The hedge fund manager explained that he invests a small percentage of his portfolio in Bitcoin, which is less than what he keeps in Gold. The billionaire investor said that while BTC may not “have intrinsic value,” it could still be useful for diversifying a portfolio.

There are so many things in a historical perspective that didn’t have intrinsic value and had perceived value. And then it went hot and it became cold. It could be either way. You just have to know what it is. It could be tulips in Holland

Ray Dalio on intrinsic value of Bitcoin

Furthermore, Mr. Dalio thinks investors should consider every alternative to cash and some financial assets, asserting Bitcoin as an excellent alternative to cash.

Mr. Dalio’s comments come when the U.S regulators have stepped up their oversight of the volatile cryptocurrency space. On Tuesday, the Chairman of SEC, Gary Gensler, said the regulator is working to form a set of rules that protect investors through better regulation.

Also Read: Cardano halts after smart contract launch, but ADA flashes bullish signs.

In September, El Salvador adopted Bitcoin as legal tender. Meanwhile, India is expected to propose a law banning cryptocurrencies. Earlier, China’s crackdown on the crypto markets was one of the reasons behind the May 19’s crypto market crash.

Though Mr. Dalio highlighted these updates, he pointed out Bitcoin’s amazing journey from inception to where it is now. The billionaire stated that BTC stood the test of time.

Despite the recent volatility issues of BTC, the flagship crypto’s success is undeniable. Bitcoin gained more than 300% in the last year, despite its value declining by nearly 50% in the May market crash.

Bitcoin Price Charts

Meanwhile, Bitcoin prices went up after the O.G. crypto plotted a golden cross on its daily charts. BTC went below its 200-Day (Yellow) Moving Average trendline on Sept 10, indicating a bearish forecast in the long-term range. However, Bitcoin price went above its 50-Day (Red) and 200-Day MA lines, and the token is now bullish across all time horizons.

BTC prices plot a golden cross. Source: BTCUSD on Tradingview.com
BTC prices plot a golden cross. Source: BTCUSD on Tradingview.com

A golden cross occurs when a short-term moving average line moves above an asset’s long-term MA line. Additionally, Bitcoin has immediate support near its 26-Day (Green) Exponential MA line at $47,212. Further support for BTC comes from its 200-Day MA at $46,009.

Also Read: Bitcoin inches up as BTC traders flip bullish on the back of positive CPI data.

Support at $45,000 is still strong for Bitcoin after BTC flipped resistance on Aug 9. On the other hand, resistance for BTC is near $49,087. A sustained upswing would mean BTC bulls would try to take prices above the $50,000. However, if that happens, resistance at $51,472 will cap any further upward movement.

Trend-based momentum oscillator MACD is slowly working its way towards bullish regions for Bitcoin. MACD forecasts bullish momentum signals when the MACD line (12-Day and 26-Day difference) moves above its signal line (9-day EMA of MACD).

MACD is moving to form a bullish crossover for BTC. Source: BTCUSD on Tradingview.com
MACD is moving to form a bullish crossover for BTC. Source: BTCUSD on Tradingview.com

Bars on the MACD histogram, which chart the difference between MACD and its signal line, are moving towards positive levels, indicating a bullish crossover soon. A bullish crossover would boost BTC’s prices.

The relative strength index for Bitcoin is safely in the neutral region with a value of 52.08.

At the time of writing, BTC was trading at $48,044, down 0.74% on the day.

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