Ray Dalio warns banks may shun fiat; highlights gold’s rally
Hedge fund founder Ray Dalio told CNBC at Davos that the global monetary order is “breaking down” as central banks and fiat holders change behavior toward currencies and debt. Dalio warned that both holders of fiat and those who need it are increasingly wary of one another, which could create systemic issues. He pointed out that gold was the standout market last year, outperforming tech, and suggested the metal’s surge reflects shifting trust in fiat. Dalio’s comments came amid geopolitical friction involving US tariffs and President Trump’s remarks about Greenland. The World Economic Forum gathering in Davos also drew crypto executives; Coinbase CEO Brian Armstrong said he would press world leaders and bankers on tokenization and crypto’s role in updating financial systems, and would discuss US digital-asset market-structure legislation. Key topics: central bank behavior, fiat currency confidence, gold’s strong performance, and policy risks affecting markets and crypto regulation.
Neutral
Dalio’s comments are macroeconomic and risk-focused rather than direct endorsements of crypto assets, so the immediate effect on crypto prices is likely limited. His warning of declining confidence in fiat and praise for gold signal increased demand for safe-haven assets; historically, such narratives can provide a tailwind for BTC and gold as alternative stores of value over the medium term. However, without concrete policy shifts or capital flows specifically into crypto, trader reaction should be cautious. Short-term: heightened volatility possible around Davos, geopolitical headlines, or regulatory developments (neutral-to-slightly bullish for safe-havens). Medium-to-long term: if central bank behavior leads to persistent fiat weakening or capital seeking non-sovereign stores of value, that would be bullish for gold and could be moderately bullish for established crypto (BTC, ETH) as digital stores of value. Watchpoints for traders: safe-haven flows, on-chain accumulation metrics, derivatives positioning, and any US regulatory moves discussed at Davos or in Congress that could materially affect crypto market structure.