Bridgewater Associates, which manages about $150 billion in assets, may consider investments in Bitcoin as volatility declines, liquidity grows and regulatory clarity improves. This was stated by the company’s chief analyst Rebecca Patterson on a Bloomberg TV interview Bloomberg TV.
During the interview, the executive said that Bitcoin’s current price moves of about 10% per day from a single tweet are ten times the volatility of the U.S. dollar and twice that of the Venezuelan bolivar.
“You need less volatility and greater price stability when you view the asset as a ‘safe haven’ and a diversification opportunity”, she explained.
Other barriers include low liquidity and an unclear regulatory stance.
“With tighter supervision of the crypto ecosystem, it will bring more comfort to investors. It will provide liquidity and temper volatility. Perhaps this is what should happen first. But I won’t pretend to judge when regulatory clarity will arise in the U.S.”, Patterson lamented.
In the interview, the chief analyst of Bridgewater Associates said that she views Bitcoin as digital gold and does not consider it appropriate to compare it with fiat currencies.
Earlier, the founder of Bridgewater Associates and crypto-skeptic Ray Dalio said that the first cryptocurrency became interesting as an alternative to gold. Later, his firm allowed for investments in a digital asset.
Recall that JPMorgan analysts recommended their clients to move 1% of their investment portfolios into Bitcoin and other digital assets as a hedge.
Earlier, experts at the financial holding criticized Bitcoin for its volatility. They called this an obstacle to corporations placing liquidity reserves in Bitcoin.
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