Ray Dalio Backs 15% Gold and Bitcoin Hedge on US Debt Rise
Bridgewater Associates founder Ray Dalio advises investors to allocate 15% of portfolios to gold and Bitcoin to hedge against currency devaluation amid rising US national debt. This marks a significant increase from his earlier Bitcoin recommendation of 1–2%. Dalio highlights Bitcoin’s limited supply and global transaction reach but remains cautious about its role as a reserve currency due to transparency and code-alteration risks. According to Treasury data, US debt has climbed above $37.1 trillion, pushing the debt-to-GDP ratio over 123%. He warns that issuing nearly $12 trillion in new Treasuries next year could spark higher interest rates, dollar weakness and stock market volatility. Dalio views the long-term debt cycle as unsustainable and urges diversification into gold and Bitcoin to protect portfolios from sharp market downturns and inflation.
Bullish
Dalio’s endorsement of a 15% Bitcoin allocation alongside gold by a prominent macro investor signals strong institutional confidence, likely boosting market demand. In the short term, this high-profile recommendation may drive trading volume and price spikes. Over the long term, framing Bitcoin as a hedge against US debt pressures reinforces its store-of-value narrative, encouraging sustained accumulation and potentially reducing volatility.