Bridgewater Associates founder Ray Dalio has a warning for Bitcoin (BTC) believers: the thing you think makes it secure might actually be its Achilles heel.
The Transparency Problem
In a preview of the upcoming "WTF is Finance" podcast, Dalio took aim at Bitcoin's fundamental architecture. The issue? Every transaction is visible on the blockchain, which sounds great for transparency until you realize who else can see those transactions.
"One can monitor what the transactions are, governments can monitor what the transactions are, and governments can interfere with those transactions," Dalio explained.
His solution to government overreach isn't another cryptocurrency. It's the oldest store of value in the book.
"Gold is the only asset that you can have that they can't mess with and control," he added.
Dalio didn't stop at privacy concerns. He also questioned Bitcoin's scarcity narrative, drawing a comparison to synthetic diamonds. The billionaire hedge fund manager suggested Bitcoin faces real risks of being cracked, broken, or otherwise controlled—challenges that don't apply to physical gold sitting in a vault.
Bitcoin's Technical Picture Looks Shaky
While Dalio debates philosophy, Bitcoin's chart is telling its own story, and it's not particularly bullish.
Bitcoin is currently testing critical support within a descending triangle pattern that's been squeezing price action since October. The 20, 50, 100, and 200-day exponential moving averages have all bunched together in the $93,500-$101,900 range, creating a resistance cluster that bulls need to break through.
Immediate support is sitting at $88,600-$89,000, with the triangle's lower boundary at $84,000 representing the make-or-break level. If Bitcoin cracks below $84,000, expect accelerated selling toward $80,000.
On the flip side, reclaiming $93,500 would be the first sign of strength, though the real battle lies at $99,200-$101,900 where those longer-term moving averages are waiting.
What The Money Flow Says
The Chaikin Money Flow indicator currently reads -0.08, indicating more selling pressure than buying interest. But here's the thing: the CMF has been bouncing around the zero line throughout December, which suggests indecision rather than panic selling.
That said, previous periods of negative CMF readings in October and November lined up with price corrections. As Bitcoin approaches the apex of this triangle pattern, watching how money flows in or out of the market could provide early warning signals of what comes next.