Bitcoin News Today: Ray Dalio boosts Bitcoin gold allocation to 15% as U.S. debt hits $36.7T doom loop

Ray Dalio, founder of Bridgewater Associates, has advised investors to allocate 15% of their portfolios to Bitcoin or gold as a hedge against risks arising from the U.S. fiscal trajectory, which he describes as a “debt doom loop.” This recommendation, shared during an appearance on the Master Investor podcast, reflects Dalio’s concern over the U.S. national debt, which has surged to $36.7 trillion, according to Treasury data. He highlighted the government’s projected need to issue an additional $12 trillion in Treasurys over the next year to service existing debt, warning of currency devaluation and systemic fiscal instability. Dalio’s 15% allocation marks a significant shift from his earlier 1%–2% Bitcoin recommendation in January 2022, underscoring a growing emphasis on alternative assets amid macroeconomic uncertainty [1].

The U.S. Treasury’s recent report reinforced Dalio’s concerns, revealing a $1 trillion borrowing estimate for the third quarter—$453 billion higher than previously projected—due to weaker cash flows and lower reserves. The agency also anticipates $590 billion in fourth-quarter borrowing, further amplifying fears of a debt-fueled fiscal path. Dalio extended his critique to other Western economies, noting that the U.K. and similar nations face comparable debt-driven challenges. He argued that fiat currencies will underperform relative to hard assets like gold and Bitcoin, which he characterized as effective diversifiers in a “doom loop” environment [2].

Despite advocating for Bitcoin, Dalio remains skeptical about its potential to replace gold or serve as a reserve currency. He cited the cryptocurrency’s transparency—allowing governments to track transactions—and its lack of privacy as barriers to adoption by central banks. While he personally favors gold over Bitcoin, he emphasized that the exact allocation between the two assets is a personal choice for investors. Bitcoin, currently trading at $118,100, and gold, which has hit recent highs, are performing strongly in the current climate, reflecting increased demand for safe-haven assets amid inflation and geopolitical tensions [3].

Dalio’s stance has sparked broader discussions about the role of alternative assets in modern portfolios. Institutional investors may consider his guidance as a catalyst for reallocating toward Bitcoin and gold, particularly as central banks grapple with balancing inflation control and economic growth. Retail investors, however, face challenges such as liquidity constraints and regulatory uncertainties, which could limit the practicality of such allocations. The cryptocurrency’s volatility remains a key point of contention, with critics arguing that its price swings make it a less reliable hedge compared to gold’s historical stability. Nonetheless, Dalio’s credibility as a macroeconomic forecaster lends weight to his endorsement of these assets as strategic diversifiers [4].

The U.S. debt crisis continues to dominate economic discourse, with experts warning of long-term implications for monetary stability. Dalio’s 15% recommendation aligns with broader market trends showing increased interest in non-traditional assets as diversification tools. As debt-driven fiscal policies persist, the interplay between fiat currencies, gold, and Bitcoin is likely to remain a focal point for investors navigating a rapidly evolving financial landscape.

Sources:

[1] [Bitcoin News Today: Dalio urges 15% allocation to gold, ...](https://www.ainvest.com/news/bitcoin-news-today-dalio-urges-15-allocation-gold-bitcoin-hedge-inflation-debt-risks-2507/)

[2] [UK in 'debt doom loop', top investor Dalio warns](https://uk.news.yahoo.com/uk-debt-doom-loop-top-064000079.html)

[3] [Latest Gold News, Prices & Rates Across the World ...](https://www.metalsdaily.com/)

[4] [Gavin Lumsden (@FundFanatic) / X](https://x.com/fundfanatic?lang=en)