Dalio Exits Bridgewater, Backs Bitcoin with 15% Allocation
Ray Dalio has sold his final stake in Bridgewater Associates and exited its board after 50 years. Bridgewater issued new shares to Brunei’s sovereign wealth fund, giving it almost a 20% stake. Dalio forecast an economic downturn worse than a recession, warning of a global debt crisis and likening potential fallout to an “economic heart attack” if the US budget deficit stays above 3% of GDP. To hedge against currency devaluation and market volatility, he raised his recommended Bitcoin allocation from 2% to 15% and continues to recommend gold as a safe haven. He praised Bitcoin as “one hell of an invention” and confirmed he holds some Bitcoin, though he still prefers gold. Despite past miscalls—like an incorrect 1982 depression prediction—Dalio’s revised Bitcoin allocation strategy signals renewed investor interest in cryptocurrency hedges amid macroeconomic uncertainty.
Bullish
Dalio’s decision to increase his Bitcoin allocation from 2% to 15% amid warnings of a worsening debt crisis and economic downturn is a strong endorsement that could boost market confidence. In the short term, this high-profile backing may drive renewed buying interest and liquidity in Bitcoin as traders adjust portfolios. Over the long term, positioning Bitcoin alongside gold as a hedge against fiscal imbalances reinforces its role as a store of value, potentially sustaining upward price momentum if macroeconomic risks materialize.