Bitcoin News Today: Bitcoin's Rise as Dollar Doubt Grows

Ray Dalio, the founder of Bridgewater Associates, has expressed concerns over the U.S. dollar and other reserve currencies amid rising government debt levels and potential erosion of their value. In a recent interview with the Financial Times, Dalio highlighted the role of cryptocurrencies as a potential hedge against the weakening purchasing power of fiat currencies. He emphasized that cryptocurrencies, due to their limited supply, could serve as an alternative store of value when demand for the dollar or other reserve currencies declines [3].

Dalio’s comments reflect a broader narrative of skepticism toward fiat currencies, which he likened to historical periods such as the 1930–1940 and 1970–1980 periods, during which fiat money faced devaluation. He pointed out that the U.S. government’s growing debt, now standing at over $37.3 trillion, is a significant concern, particularly as the cost of servicing this debt has surged to more than $1 trillion annually [2]. As the U.S. debt burden continues to grow, Dalio warned that this could lead to a diminished appeal of dollar-denominated assets, prompting investors to seek alternatives such as gold and cryptocurrencies [3].

The founder of Bridgewater also noted the increasing appeal of cryptocurrencies, especially in a context of rising geopolitical tensions and policy shifts. He cited the BRICS nations’ potential move to reduce their reliance on the U.S. dollar as a significant catalyst for alternative currency adoption. BRICS members, including China, India, and Russia, have explored the use of blockchain-based payment systems and local currencies to bypass the dollar-dominated SWIFT network [4]. This shift could accelerate crypto adoption as a hedge against fiat instability and potentially benefit digital assets like Bitcoin and Ethereum.

Despite these developments, Dalio downplayed the risk of systemic issues arising from stablecoins’ exposure to U.S. Treasuries, provided they remain well-regulated. He noted that while the real value of Treasuries may decline, this is a manageable risk if stablecoins are appropriately supervised [3]. His remarks align with a broader sentiment among financial experts who view cryptocurrencies as a viable alternative in a world increasingly skeptical of fiat currencies.

The macroeconomic implications of Dalio’s comments are significant. If the U.S. dollar loses its position as the primary global reserve currency, it could trigger a shift in capital toward alternative stores of value, including crypto. This scenario has historical precedents, such as the 2008 financial crisis, which saw the emergence of Bitcoin as a response to centralized financial failures [4]. With Bitcoin trading at $103,839 as of late August 2025, and the total crypto market cap reaching $3.47 trillion, the growing interest in digital assets signals a potential reconfiguration of global financial systems [4].

Analysts suggest that the interplay between U.S. debt dynamics and global monetary policy will be a key determinant of crypto’s trajectory. The possibility of a “dollar-induced heart attack” in the U.S. economy, as Dalio previously warned, could further heighten demand for crypto as a non-correlated asset [2]. However, the short-term volatility of digital assets remains a challenge, particularly if U.S. economic instability leads to broader risk-off sentiment.

In conclusion, Ray Dalio’s remarks underscore a growing awareness of the limitations of fiat currencies and the potential for cryptocurrencies to serve as an alternative hedge. As global markets navigate the complexities of rising debt and shifting geopolitical dynamics, the role of crypto in reshaping financial systems remains a topic of increasing interest among investors and policymakers.

Source:

[1] title1 (https://www.cnn.com/2025/09/02/business/trump-us-autocracy-ray-dalio-intl)

[2] title2 (https://fortune.com/2025/09/02/ray-dalio-america-debt-induced-heart-attack-trump/)

[3] title3 (https://www.cryptotimes.io/2025/09/03/ray-dalio-flags-cryptocurrencies-as-dollar-hedge-amid-rising-debt/)

[4] title4 (https://www.interactivecrypto.com/brics-dropping-the-dollar-could-this-347t-crypto-market-surge-be-your-opportunity)