Bitcoin Retreats from All-Time High as Ray Dalio Expresses Skepticism
Bitcoin experienced a slight pullback, declining 1.23% to $123,901.25 after reaching a record high of $125,245.00. The broader cryptocurrency market also saw declines, with major altcoins following Bitcoin's trend. Despite the dip, Bitcoin ETFs recorded $3.2 billion in inflows, indicating continued institutional interest. Ray Dalio expressed skepticism about Bitcoin becoming a reserve currency, citing privacy concerns and potential government controls. Citigroup adjusted its Bitcoin price targets, lowering the near-term forecast to $133,000 but raising the 12-month target to $181,000.
*this image is generated using AI for illustrative purposes only.
Bitcoin, the world's leading cryptocurrency, has experienced a slight pullback after reaching a new all-time high. The digital asset declined 1.23% to approximately $123,901.25, retreating from its record peak of $125,245.00. This movement comes amidst a broader cryptocurrency market decline and ongoing uncertainty surrounding a potential U.S. government shutdown.
Cryptocurrency Market Overview
The cryptocurrency market is witnessing a general downturn, with major altcoins following Bitcoin's lead:
| Cryptocurrency | Price Change |
|---|---|
| Bitcoin | -1.23% |
| Ethereum | -1.14% |
| XRP | Up to -3% |
| BNB | Up to -3% |
| Solana | Up to -3% |
| Dogecoin | Up to -3% |
The total cryptocurrency market capitalization has decreased by 0.15%, now standing at $4.22 trillion.
Ray Dalio's Skepticism on Bitcoin as Reserve Currency
Hedge fund manager Ray Dalio has expressed skepticism about Bitcoin becoming a reserve currency for central banks, citing two main concerns:
- Lack of privacy due to public transactions
- Potential government controls that could reduce its effectiveness
Speaking on 'The Master Investor' podcast, Dalio acknowledged that Bitcoin is perceived as alternative money worth attention, noting that money must serve as both a medium of exchange and store of wealth. Despite his reservations, Dalio disclosed he holds some Bitcoin in his portfolio, though not much.
Bitcoin ETF Inflows and Institutional Demand
Despite the recent price dip, Bitcoin continues to attract significant institutional interest:
- Bitcoin ETFs have recorded $3.2 billion in inflows
- Institutional investors are viewing Bitcoin as a potential hedge against U.S. dollar fluctuations
Technical Analysis and Market Outlook
Market analysts have identified key levels for Bitcoin:
- Resistance: $125,000.00
- Support range: $110,000.00 - $122,000.00
Despite the current volatility, many analysts maintain a bullish outlook on Bitcoin, citing strong fundamentals and positive liquidity flows. However, it's important to note that macro risks, including potential dollar strength and regulatory changes, could lead to market corrections.
Citigroup Adjusts Price Targets
Citigroup has adjusted its price targets for Bitcoin:
- Lowered near-term forecast to $133,000 from $135,000
- Raised 12-month target to $181,000
Factors Influencing the Market
Several factors are currently influencing the cryptocurrency market:
- U.S. government shutdown uncertainty
- Institutional demand for Bitcoin as a hedge
- Overall market liquidity
- Potential regulatory changes
- Macroeconomic factors affecting dollar strength
As the cryptocurrency market continues to evolve, investors and enthusiasts alike will be closely watching these developments and their impact on Bitcoin and other digital assets.
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