The Bitcoin (CRYTO:BTC) price is up 3% over the past 24 hours.
One Bitcoin is currently worth US$48,391 (AU$66,288).
The world’s biggest crypto by market cap has enjoyed a strong rebound since tumbling from recent highs of US$52,633 on 7 September. That tumble went on for 6 days (though not in any kind of straight line), seeing the token fall to US$43,770 on Monday, 13 August.
The rapid 17% fall is par for the course in the highly volatile crypto markets.
In fact, investors may have seen it as a buying opportunity. Bitcoin has now gained more than 10% since Monday.
10-fold increase in Bitcoin price “doesn’t make sense”
Cryptocurrencies are well-known for their potentially huge and rapid price gains…and losses.
Last year at this time, Bitcoin was trading around US$11,000. Meaning its currently up more than 4-fold (some 336%) over 12 months. Though still well down from its mid-April record highs of US$64,889.
With the token receiving greater attention from institutional investors – and market movers like Elon Musk – some fans have suggested it could run far higher.
Like Cathie Wood, the founder of Ark Investment Management. Wood has forecast that Bitcoin will see its value increase 1,100% (10-fold) in 5 years.
But not everyone agrees with that bullish assessment.
Ray Dalio, the billionaire founder of Bridgewater Associates, doesn’t buy it.
Speaking at the SALT conference in New York, Dalio said that kind of price gain “doesn’t make sense to me”.
Cash is trash
In other Bitcoin related advice, Dalio told CNBC yesterday (overnight Aussie time), “First, know cash is trash, so don’t keep it in cash.”
As Bloomberg reported Dalio, “[S]aid he has some money invested in Bitcoin, but it’s a small percentage of his investment in gold, which in turn is a small percentage of his other assets.”
Dalio cautioned that while governments appear intent on squashing cryptos if they look like they’ll be successful, investors should still diversify their holdings.
“At the end of the day if it’s really successful, they’ll kill it. But that doesn’t mean it doesn’t have a place,” he said.