Bitcoin News Today: Bitcoin and Gold Rise as Dollar’s Power Fades, Warns Dalio

Ray Dalio, the founder of Bridgewater Associates, has expressed concerns over the weakening status of the U.S. Dollar as a reserve currency, linking the trend to the increasing adoption of Bitcoin, other cryptocurrencies, and gold as alternative stores of value. In a recent interview with the Financial Times, Dalio highlighted the growing appeal of digital assets, noting that their limited supply positions them as attractive alternatives to fiat currencies when demand for the dollar declines. This observation comes amid a broader discussion on the U.S. economic landscape, where Dalio has repeatedly warned about the risks of unsustainable borrowing and rising debt, which he believes could lead to a "debt-induced heart attack" within two to three years [2].

The U.S. debt burden, currently standing at $37.3 trillion, continues to pose challenges for fiscal stability. The government’s interest expenses alone reached $60.95 billion in July, according to Treasury data, highlighting the escalating costs of servicing the debt. Dalio emphasized that as confidence in the U.S. Dollar wanes, investors are shifting toward assets like gold and cryptocurrencies. Gold prices have surged past $3,600 per ounce, marking a 33% increase year-to-date, outperforming the S&P 500 during the same period [3].

In addition to his macroeconomic concerns, Dalio also addressed the role of stablecoins, which are digital currencies typically pegged to real-world assets like the U.S. Dollar. He argued that stablecoins could be safe if well-regulated but warned that the declining purchasing power of U.S. Treasuries poses a risk to investors. His remarks align with growing concerns from other economists, including Nobel laureate Jean Tirole, who has raised alarms about the potential for government bailouts in the event of a stablecoin collapse due to inadequate oversight [4].

The Federal Reserve’s independence has also come under scrutiny, particularly as the Trump administration has attempted to influence monetary policy. Dalio warned that if the Fed loses its independence, it would undermine confidence in the U.S. Dollar and make holding dollar-denominated assets less attractive. This sentiment is echoed by European Central Bank President Christine Lagarde, who highlighted the global implications of a politically influenced U.S. monetary policy. The potential for reduced independence at the Fed underscores the broader risks to the dollar’s status as the world’s primary reserve currency [1].

The growing interest in alternative assets like Bitcoin and gold reflects a broader shift in investor sentiment. With concerns over U.S. debt and the potential for political interference in monetary policy, digital assets and precious metals are increasingly viewed as hedges against inflation and currency devaluation. Dalio’s analysis points to a structural shift in global finance, where the declining dominance of the U.S. Dollar is accelerating the adoption of alternative stores of value. This trend is likely to continue as long as structural imbalances in the U.S. economy persist and confidence in traditional financial instruments remains fragile.

Source:

[1] The US is transforming into a 1930s-style autocracy, says ... (https://www.cnn.com/2025/09/02/business/trump-us-autocracy-ray-dalio-intl)

[2] Ray Dalio says America's 'debt-induced heart attack' will ... (https://finance.yahoo.com/news/ray-dalio-says-america-debt-105351577.html)

[3] Billionaire Ray Dalio Explains Why Bitcoin Gains With US ... (https://coingape.com/billionaire-ray-dalio-explains-why-bitcoin-gains-with-us-dollar-collapse/)

[4] Nobel Prize-Winning Economist Warns Governments May Pay ... (https://finance.yahoo.com/news/nobel-prize-winning-economist-warns-071726755.html)