After being critical of cryptocurrencies as a new asset class, hedge fund billionaire Ray Dalio now endorses Bitcoin. Ray Dalio announced yesterday that he owns some Bitcoin and that he believes it is a better investment than bonds. This announcement comes after a series of non-stop FUD from institutions and celebrities.
This is unexpected news considering how Dalio warned the public in May that he feared the US would ban Bitcoin. When Dalio spoke with Yahoo Finance back in March, he said:
“Every country treasures its monopoly on controlling the supply and demand. They don’t want other currencies to be operating or competing, because things can get out of control. So I think that it would be very likely that you will have it under a certain set of circumstances outlawed the way gold was outlawed,”https://ca.finance.yahoo.com/news/ray-dalio-on-bitcoin-and-probability-of-ban-130008375.html
This was also a flip-flop so to speak from his statements in January this year. According to Cointelegraph.com, Dalio said:
“Bitcoin is one hell of an invention.”https://cointelegraph.com/news/hedge-fud-manager-ray-dalio-says-good-probability-of-a-us-bitcoin-ban
He made further statements that he was impressed about Bitcoin’s longevity and success being around for more than ten years. It appears the billionaire investor has mixed feelings about Bitcoin and crypto. It wouldn’t be surprising if he comes out later in the month revoking his statements from yesterday however. This could be just like how quickly Elon Musk goes back and forth between positive and negative statements about crypto on Twitter.
Is it possible these billionaires and celebrities like Musk and Dalio are making these statements to manipulate the market? We can’t verify this for certain, but we can almost be certain they know that their remarks and public statements carry a lot of weight. For Musk and Dalio not to know that they can heavily influence and move markets would be unbelievable.
Dalio has also made statements about how he believes the IRS will come heavily after crypto in light of the U.S. going into further debt.
Dalio’s remarks seemed to give the whole market a nice nudge after a very turbulent month. Bitcoin found it’s way back up to $40,000 and Ethereum went all the way back up to $2,900. Many other larger caps were also able to get some nice traction yesterday. MATIC went up 100% in a single day getting close back to its all time high.
The crypto market has become even more unpredictable in many ways than 2017. Sure, the industry was more volatile back then. However, there were not any influential public figures making statements about Bitcoin, Ethereum, and other cryptos as they do now.
If you enjoyed this article, you might also want to check out The Future Of Crypto Is Bullish: Here’s Why.
Aaron is passionate about blockchain and has been an investor in cryptocurrencies for the past years. He enjoys engaging with other people in the cryptocurrency community online, particularly on Telegram, and learning from experts.