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Bitcoin’s resurgence above $120,000 has reignited global debate over its role in the financial system. Billionaire hedge fund manager Ray Dalio has added fresh fuel to the conversation by describing Bitcoin as “alternative money,” joining a growing chorus of influential investors who see the cryptocurrency as more than just a speculative asset.
The milestone rally comes as on-chain data reveals more than $3.7 billion in realized profits were taken in a single day — the fifth-largest such event in 2025. Yet despite heavy selling, market sentiment remains bullish, with analysts and institutions forecasting further upside in the months ahead.
Ray Dalio: Bitcoin Is Hard Money for a New Era
In a recent interview, Ray Dalio, founder of Bridgewater Associates, reiterated his view that Bitcoin has emerged as a credible form of “alternative money.” Dalio compared Bitcoin to gold and silver, assets long considered safe havens during economic uncertainty.
“Bitcoin now has the defining features of hard money,” Dalio explained. “It has scarcity, portability, and growing global recognition.”
Despite his positive stance, Dalio also pointed out limitations that could prevent Bitcoin from being widely adopted as a reserve currency by central banks. He cited transparency requirements for transactions and looming regulatory oversight as potential hurdles.
Still, Dalio’s comments add weight to the evolving narrative of Bitcoin as a legitimate asset class. His perspective mirrors that of financial educator Robert Kiyosaki, who has consistently urged investors to accumulate Bitcoin, silver, and gold to hedge against systemic risks.
Investors Turn to Alternative Assets Amid Economic Shifts
The renewed focus on Bitcoin as “alternative money” reflects broader economic conditions. Global bond markets are under pressure, particularly due to reduced appetite for U.S. Treasuries. With traditional safe-haven assets offering limited returns, investors are increasingly diversifying into digital assets.
For Dalio and Kiyosaki, the limited supply of Bitcoin — capped at 21 million coins — makes it fundamentally stronger than fiat currencies, which can be printed endlessly. This scarcity, combined with growing institutional interest, has bolstered Bitcoin’s case as a hedge against inflation and financial instability.
$3.7 Billion in Profits Realized
Bitcoin’s surge above $120,000 triggered a wave of profit-taking among long-term holders. Data from CryptoQuant shows $3.7 billion in realized gains were recorded in just 24 hours, marking one of the largest profit-taking events this year.
Analyst Caueconomy explained that such large-scale selling doesn’t necessarily signal weakness. Instead, it may reflect long-term holders locking in profits, while short-term traders continue to fuel market momentum.
“The selling activity doesn’t erase bullish momentum,” he said. “It simply shows that long-term investors are capitalizing on gains while market demand remains strong.”
Uptober: A Bullish Start to the Month
October has historically been a favorable month for cryptocurrencies, and traders are betting on a repeat performance. The phrase “Uptober” is once again trending across the crypto community as Bitcoin extends its winning streak.
In just five days, Bitcoin has gained over 8%, driven by strong spot demand and surging futures interest. Open interest in Bitcoin futures has hit an all-time high of $88 billion, underscoring expectations of further price growth.
Spot Bitcoin ETFs have also recorded significant inflows, reflecting growing adoption among traditional investors.
Institutional Forecasts Signal More Upside
Wall Street is not ignoring Bitcoin’s momentum. Citigroup recently projected Bitcoin could reach as high as $231,000 within 12 months. The bank outlined a base case target of $181,000 and a bear case of $82,000, showing wide potential outcomes but a generally bullish tilt.
JPMorgan has also voiced optimism. Analysts there suggested that Bitcoin is undervalued compared to gold and could reasonably rise to $165,000. They pointed to Bitcoin’s declining volatility relative to gold as evidence of the asset’s maturation.
The Road Ahead for Bitcoin
While profit-taking has temporarily capped Bitcoin’s surge, the overall sentiment remains positive. Strong institutional interest, ETF inflows, and macroeconomic conditions continue to support the case for Bitcoin as a resilient asset.
Ray Dalio’s description of Bitcoin as “alternative money” may resonate more strongly as investors seek hedges against inflation, debt crises, and geopolitical risks. Whether or not central banks adopt Bitcoin in the future, its growing legitimacy among high-profile investors suggests it has already earned a permanent seat at the financial table.
With Bitcoin back above $120,000 and major institutions signaling higher targets, the next few months could determine just how far the asset can climb in this bullish cycle.
