Bitcoin News Today: Ray Dalio urges 15% Bitcoin or gold allocation to hedge U.S. debt risks

Billionaire Ray Dalio has recommended allocating 15% of investment portfolios to Bitcoin and gold to hedge against the risks of rising U.S. debt and potential currency devaluation. The founder of Bridgewater Associates, a leading hedge fund, emphasized during an interview on The Master Investor Podcast that macroeconomic risks—particularly the U.S. government’s unsustainable fiscal policies—remain underpriced in financial markets. Dalio highlighted that the U.S. spends 40% more than it collects in revenue, with federal debt reaching six times its annual income and interest payments consuming half the budget deficit. He argued that the government relies on issuing more debt and central bank money creation to sustain its obligations, creating a systemic risk that could trigger market instability [1].

Dalio’s endorsement marks a shift from his earlier skepticism toward Bitcoin, which he now views as a potential diversifier alongside gold. He advised investors to hold at least 15% in either asset to mitigate exposure to fiat currency devaluation. While he personally favors gold, citing its historical role as a store of value and its lack of regulatory or technological vulnerabilities, he acknowledged Bitcoin’s utility in a modern portfolio. “I’m strongly preferring gold to Bitcoin, but that’s up to you,” Dalio stated, noting that Bitcoin’s decentralized nature and limited supply make it a viable alternative to traditional assets [2]. However, he cautioned that central banks are unlikely to adopt Bitcoin as a reserve currency due to its transparency and lack of privacy.

The recommendation reflects Dalio’s broader macroeconomic framework, which anticipates a “classic devaluation” of paper money as global debt burdens mount. He warned that markets could face a significant crash if the Federal Reserve resumes aggressive quantitative easing or if the government exerts control over the central bank. In such a scenario, assets like gold and Bitcoin—unaffected by monetary policy—could serve as critical hedges. Dalio reiterated that investors with no strong views on traditional assets should allocate 15% to either gold or Bitcoin, emphasizing that these assets offer protection against policy-driven volatility [3].

Critics have debated the feasibility of Dalio’s strategy, citing Bitcoin’s price volatility as a potential drawback. However, supporters argue that its role as a digital counterpart to gold is gaining traction, especially as regulatory clarity and institutional adoption advance. Dalio’s influence may encourage more investors to reconsider Bitcoin’s role in portfolios, particularly as macroeconomic uncertainties persist. His framework also aligns with broader trends in 2025, where Bitcoin’s growing market capitalization has positioned it as a recognized tool for diversification [4].

The hedge fund mogul stressed that portfolio decisions should align with individual convictions. Investors favoring Bitcoin could prioritize its decentralized properties, while those prioritizing gold might lean toward its historical resilience. Regardless of the choice, Dalio advocated for exposure to both assets, asserting that such a strategy provides protection against policy missteps and market swings. “Portfolio balance must reflect one’s own convictions,” he explained, while cautioning against overreliance on any single asset [5].

Dalio’s guidance comes amid heightened scrutiny of U.S. fiscal policies, with analysts noting the long-term erosion of the dollar’s purchasing power due to accommodative monetary policies. His 15% rule offers a structured approach to hedging against these risks, emphasizing the importance of uncorrelated assets in an environment where traditional cash holdings lose value. As global debt continues to rise, Dalio’s framework positions gold and Bitcoin as complementary tools to safeguard capital against systemic risks, reinforcing their roles in modern portfolio theory [6].

Source: [1] [Billionaire Dalio Backs 15% Bitcoin (BTC) or Gold Allocation](https://u.today/billionaire-dalio-backs-15-bitcoin-btc-or-gold-allocation) [2] [Ray Dalio Urges Bitcoin Or Gold: Says Fiat's On A Slippery ...](https://financefeeds.com/ray-dalio-urges-bitcoin-or-gold/) [3] [Billionaire Ray Dalio Recommends 15% Bitcoin Allocation ...](https://cryptonews.com/news/billionaire-ray-dalio-recommends-15-bitcoin-allocation-as-fiat-currencies-face-classic-devaluation/) [4] [Ray Dalio Recommends 15% Portfolio Allocation to Bitcoin or Gold](https://coinalyze.net/bitcoin/usdt/binance/price-chart-live/) [5] [Ray Dalio Endorses Bitcoin as Hedge Amid U.S. Debt Concerns](https://defi-planet.com/2025/07/ray-dalio-endorses-bitcoin-as-hedge-amid-u-s-debt-concerns/) [6] [Macro Outlook of Crypto Market in the Second Half of 2025](https://www.coinlive.com/news/macro-outlook-of-crypto-market-in-the-second-half-of)