U.S. Dollar "Collapse" Warning Resurfaces: Bridgewater's Dalio Says $39 Trillion Debt Could Blow Up System, Wall Street Pivots Fund From Gold to Bitcoin

BlockBeats News, May 9th. Bitcoin longs add to the macro narrative again. Bridgewater Associates founder Ray Dalio warned that the $39 trillion U.S. debt crisis could trigger long-term devaluation or even a "collapse" of the U.S. dollar, while JPMorgan analysts believe that the market is undergoing a "currency debasement trade" rotation from gold to Bitcoin.

Dalio stated that the U.S. currently has expenditures of about $7 trillion per year, with income of only about $5 trillion, and the long-term fiscal deficit and debt expansion are approaching a historically dangerous level. He believes that in similar periods, fiat currencies tend to continuously devalue, while gold benefits. At the same time, JPMorgan analyst Nikolaos Panigirtzoglou pointed out that following the escalation of the Iran conflict, Bitcoin ETF inflows have continued to exceed those of gold ETFs, with some funds now considering Bitcoin as "digital gold" and a hedge against dollar devaluation.

The report mentioned that since the outbreak of the U.S.-Iran conflict, the price of Bitcoin has risen by about 30%, although it is still below the historical high of $126,000 in 2025. Prominent investors such as Stanley Druckenmiller and Elon Musk have also expressed concerns about the long-term reserve status of the U.S. dollar.