Dalio Urges 15% Bitcoin & Gold Hedge Against US Debt Crisis
Bridgewater founder Ray Dalio warns that soaring US government debt, now six times annual revenue with $1 trillion in annual interest payments, poses a systemic risk to markets. He predicts any further Fed intervention or new round of quantitative easing could trigger a sharp sell-off in bonds and equities.
To protect against currency devaluation and financial contagion, Dalio recommends allocating at least 15% of portfolios to gold and Bitcoin. He praises gold’s historical role as an independent store of value and highlights Bitcoin’s 21 million cap, decentralization and borderless transfers. He also notes Bitcoin’s traceability and potential protocol risks, holding a small personal position alongside gold.
Traders should consider this strategy to hedge against rising inflation, geopolitical tensions and market instability. Alternative assets like gold and Bitcoin could offer protection in the next financial crisis.
Bullish
Institutional endorsement from Ray Dalio enhances Bitcoin’s credibility as a hedge. His call for a 15% allocation could spur demand among investors seeking protection from a looming US debt crisis. In the short term, this may boost buying pressure, while long-term adoption could strengthen Bitcoin’s market stability. Though volatility remains, Dalio’s stance is likely to drive positive sentiment and accumulation.