Bitcoin News Today: Ray Dalio Recommends 15% Bitcoin-Gold Allocation as U.S. Debt Reaches 125% of GDP

Billionaire investor Ray Dalio, founder of Bridgewater Associates, has advised allocating 15% of investment portfolios to Bitcoin and gold as a hedge against macroeconomic risks, including U.S. debt accumulation and potential fiat currency devaluation [1][2]. This recommendation marks a significant shift from his earlier stance, where he suggested allocating 1% to 2% to Bitcoin as recently as January 2022 [3]. The move highlights growing concerns about the U.S. fiscal landscape, with federal debt reaching 125% of GDP and a fiscal deficit of 7% of GDP—the highest among industrialized nations [2].

Dalio’s rationale is rooted in the risk of a “classic devaluation” scenario, where fiat currencies lose value relative to hard assets like gold and Bitcoin. He compared the current environment to historical periods of monetary instability, such as the 1930s and 1970s, emphasizing the need for diversification to mitigate downside risks [2]. While acknowledging Bitcoin’s utility as a decentralized medium for global transactions, Dalio expressed skepticism about its viability as a reserve currency. Instead, he described gold as the “purest play” for preserving value, citing its role as the second-largest reserve asset globally after the U.S. dollar [2].

The hedge fund manager, who holds both assets, revealed a notable tilt toward gold in his personal portfolio. However, he argued that Bitcoin’s role as a decentralized alternative to traditional money makes it a strategic component of a diversified strategy. “If you were neutral on everything and optimizing for the best return-to-risk ratio, you would have about 15% in gold or Bitcoin,” Dalio stated during an appearance on the Master Investor Podcast [2]. This 15% allocation is higher than the 3% to 5% typically seen in traditional asset allocations, reflecting his urgency over macroeconomic vulnerabilities.

Dalio also proposed a “3% solution” to address the U.S. fiscal deficit, urging a combination of tax hikes and spending cuts to reduce the deficit from 7.5% of GDP to 3% [2]. He framed this as critical to stabilizing the economy and preserving the U.S. dollar’s value. Despite advocating for gold and Bitcoin, Dalio did not rule out the dollar’s long-term resilience, stating the U.S. could avoid a “devaluation spiral” if fiscal discipline is restored.

The timing of the recommendation is significant, as global markets face inflationary pressures and accommodative monetary policies. Dalio’s 15% allocation serves as a signal for investors to prepare for scenarios where traditional assets like stocks and bonds may underperform [1][2]. His comments underscore the growing intersection between macroeconomic theory and digital assets, as investors seek alternative strategies in an increasingly complex financial landscape.

Full references:

[1] https://www.coindesk.com/markets/2025/07/29/billionaire-ray-dalio-backs-15-allocation-to-bitcoin-and-gold-amid-u-s-debt-spiral

[2] https://finance.yahoo.com/news/ray-dalio-says-15-bitcoin-003103801.html

[3] https://x.com/Sino_Market/status/1950034993595764862