04.02.2023 08:26 PM
Ray Dalio: Bitcoin will not be able to replace fiat money.

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It is even greater to observe that bitcoin has approached the level of $24,350 on the 4-hour TF. Although there hasn't been a noticeable rebound from this level yet, the cryptocurrency can continue to put its stability to the test. As we've already mentioned, clearing the level will signal approval for the "bullish" trend. Otherwise, bitcoin runs the risk of falling back to the point at which it began to rise in January. At this point, the technical picture can only be described in this way.

As a method of accumulation and savings, fiat money is in grave danger, according to well-known crypto critic Ray Dalio, but bitcoin and stablecoins cannot take its place. "Money is in danger right now because so many central banks are busy issuing currency. People may eventually question the usefulness of real money, and confidence in the Central Bank will decrease," Dalio believes. On the Skuawk broadcast, Dalio remarked, "Bitcoin has accomplished a lot in 12 years, but it is too volatile to be a viable means of accumulation or saving. In terms of the financial system, money, and central banks, Bitcoin is a minor item, yet it receives way too much attention. For me, bitcoin is worth less than a third of what Microsoft stock is worth."

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Mr. Dalio gave a fairly typical viewpoint. If many people initially expected bitcoin to compete with central banks and fiat money, it became evident after 12 years that it would not be able to perform this job. Bitcoin is still seen as a dangerous and volatile financial vehicle, rather than a means of exchange or payment. Of course, some owners use bitcoin to send money over the Internet or to make payments to other owners. However, it still primarily serves as an investing tool. This one point alone leads us to the conclusion that bitcoin's value, which is determined by investors, may reach $100,000 or greater in the future. Bitcoin will grow as much as it wants if market confidence in its growth returns.

The first cryptocurrency's rise continues with a target of $24,350 over a 4-hour period. Since the level of $24,350 has been effectively worked out, long positions can now be closed. When this level is broken, new long positions with a target of $29,750 can be initiated. You can start short positions (even right now) with a stop loss above this price and a target of $18,500 if there is a rebound from $24,350. But be careful: Bitcoin may repeatedly test the $24,350 mark.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2023
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