Ray Dalio Says Bitcoin’s Transparency Will Keep Central Banks Away

Bridgewater Associates founder Ray Dalio said on X that Bitcoin’s public ledger makes it unsuitable as a central bank reserve asset. Dalio, who has previously disclosed holding roughly 1% of his portfolio in Bitcoin, argued that the ability to monitor and potentially control transactions is the core reason central banks have not moved to hold it alongside gold.

Dalio Says Bitcoin’s Traceability and Equity Correlation Disqualify It as a Reserve

Dalio’s X post on Sunday revisited arguments he first made on the All-In Podcast on March 3. He cited three structural issues with Bitcoin as a reserve asset: its lack of privacy, its high correlation with technology stocks, and its relatively small and easily influenced market.

“Bitcoin lacks privacy. Transactions can be monitored and potentially controlled, which is why central banks aren’t looking to hold it,” Dalio said.

On correlation, Dalio pointed to Bitcoin’s tendency to trade alongside equities rather than independently during periods of stress. Bitcoin’s 90-day correlation with the Nasdaq has risen from 0.16 to 0.85 since the Iran war began in late February, according to TradingView data. That level of co-movement undercuts the case for Bitcoin as a diversifying reserve asset.

“Ultimately, gold is more widely held, deeply established, and still plays a central role in the global system,” Dalio said.

Hougan, Thorn, and Sigel Argue Dalio’s Critiques Are the Opportunity

The remarks drew immediate responses from crypto industry figures. Bitwise chief investment officer Matt Hougan said Dalio’s concerns are real but argued they are precisely what makes Bitcoin an opportunity at its current size.

“These criticisms are quite literally the opportunity,” Hougan told CoinDesk in March after Dalio’s original podcast appearance. “We invest in bitcoin because we think these things will change over time; that developers will solve quantum risk and central banks will come around.”

Hougan noted that Bitcoin’s market capitalization of roughly $1.4 trillion is approximately 4% of gold’s estimated $35 trillion.

“If these critiques did not exist, bitcoin would already be at $1 million a coin,” he said.

Galaxy head of research Alex Thorn said Dalio’s arguments echo critiques that circulated in Bitcoin’s early years and have not aged well as adoption has grown.

“Bitcoin’s adoption and utility continue to grow while quantum risks are being addressed,” Thorn stated in March.

VanEck’s Matthew Sigel added that quantum computing risk is “a broader cryptography challenge facing the entire financial system, not a flaw unique to bitcoin.” Veteran trader Oliver Velez argued that Bitcoin’s transparency is its core advantage, calling it a direct alternative to the “opacity” that allowed shadow banking to build unchecked before 2008.

Gold Remains the Active Central Bank Reserve Play; Bitcoin Sits on the Sideline

Dalio has consistently favored gold over Bitcoin in his public commentary and has recommended allocating up to 15% of a portfolio to gold, compared with roughly 1% to Bitcoin. Central banks have been net buyers of gold in recent years, while no major central bank holds Bitcoin as a formal reserve asset.

The U.S. government holds Bitcoin through seizures and has designated those holdings as part of a strategic Bitcoin reserve under an executive order signed by President Trump last year. That reserve is funded entirely through forfeiture rather than open-market purchases, a fundamentally different posture from the active gold accumulation Dalio points to.

Bitcoin was trading near $80,900 at the time of Dalio’s post. Gold was trading above $4,800 per ounce.