Bridgewater's Ray Dalio Suggests Allocating to Bitcoin as Risk Offset, Warns of Looming U.S. Debt Crisis

BlockBeats News, August 22, Bridgewater Associates founder Ray Dalio stated that as U.S. debt pressure continues to rise, investors should reduce their bond exposure and hedge risks through non-government-issued assets such as gold and Bitcoin.

Dalio recently suggested that portfolios could allocate about 10%-15% to gold and hold "some" Bitcoin to mitigate debt crisis risks and enhance long-term returns. He believes that as the global debt cycle reaches a critical stage, non-sovereign currency assets like Bitcoin may benefit.

Dalio pointed out that the U.S. government is expected to have revenues of around $5.5 trillion this year, but expenditures will reach $7.5 trillion, resulting in a fiscal gap of about $2 trillion. At the same time, U.S. interest expenses are projected to be close to $1 trillion, with around $10 trillion in debt facing refinancing pressure.

He warned that if fiscal policy cannot be adjusted, a U.S. debt crisis could emerge in "the next three years or so (fluctuating within two years)." With increasing debt repayment pressure, the government may be forced to accept higher interest rates or rely on central bank balance sheet expansion to purchase debt, thereby weakening currency value and driving up inflation.

Recently, U.S. long-term bond yields rose to multi-year highs, and U.S. Treasury Secretary Janet Yellen announced an expansion of the long-term U.S. bond repurchase plan. However, the market believes that this measure can only provide short-term support and cannot solve the structural fiscal issues.

Driven by a weakening U.S. dollar, improved liquidity expectations, and increased safe-haven demand, Bitcoin recently surged above $77,000, experiencing one of its strongest weekly gains since 2023. Dalio stated, "Non-government-issued monetary assets such as gold and Bitcoin are expected to perform well."

This statement further strengthens the market's attention to the Bitcoin "digital gold" narrative, as investors increasingly view it as a key asset for hedging currency devaluation and long-term fiscal risks.