TechFlow News: On May 12, according to CoinDesk, billionaire hedge fund manager Ray Dalio stated that Bitcoin’s lack of privacy—its transactions being monitorable and potentially controllable—is the primary reason central banks are reluctant to hold it. Dalio said approximately 1% of his portfolio is allocated to Bitcoin but argued that Bitcoin’s transparent ledger makes it unsuitable as a reserve asset.
Dalio also noted that Bitcoin’s 90-day correlation coefficient with the Nasdaq Index stands at 0.89, meaning roughly 79% of its price volatility can be explained by movements in tech stocks—undermining its function as an independent store of value. Furthermore, Bitcoin’s market size remains comparatively small relative to gold and is more susceptible to influence; Dalio believes gold continues to play a more central role within the global financial system.
