According to COINOTAG News, on May 20th, renowned investor Ray Dalio, the founder of Bridgewater Associates, remarked that the recent downgrade of the U.S. credit rating by Moody’s does not accurately represent the underlying risks. He emphasized that the U.S. government’s substantial debt might prompt measures such as money printing to settle obligations, with the resulting currency devaluation diminishing the real purchasing power of bondholders. This shift in perception is prominent as all major rating agencies have revised their assessments of U.S. debt risk, leading the market to reconsider its stance.
Bitunix Analysts have indicated that Dalio’s warning about money printing intensifies the urgency for investors seeking inflation-resistant and non-sovereign assets. In this context, cryptocurrencies are emerging as viable safe havens due to their inherent decentralization and limited supply. With ongoing concerns surrounding credit risk and currency depreciation, should Bitcoin maintain its position above the $100,000 mark, it may aim to retest its historical peak of $110,000 shortly.
Investors are encouraged to prioritize well-established cryptocurrencies like Bitcoin and Ether, while also considering a moderate investment in application tokens that are less correlated with the U.S. dollar and possess anti-inflation attributes. Observing fluctuations in bond market yields and indications from U.S. fiscal policies will be crucial, as these factors will significantly shape market risk appetite and investment strategies.