Bitcoin News Today: Bitcoin’s Rise vs. a Dying Dollar: Dalio Sounds the Warning

Ray Dalio, the founder of Bridgewater Associates, has increasingly positioned cryptocurrency, particularly Bitcoin, as a viable alternative currency amid growing concerns about the U.S. dollar and the nation’s financial system. His comments, made in a Financial Times interview and shared through multiple outlets, highlight a shift in investor sentiment as global debt levels rise and inflationary pressures persist [1]. Dalio noted that crypto and gold are becoming more attractive as hedges against excessive money printing and debt accumulation, especially in environments where the demand for fiat currencies weakens [2].

According to Dalio, Bitcoin’s fixed supply of 21 million coins gives it a structural advantage over the U.S. dollar, which can be printed indefinitely. He has adjusted his recommended portfolio allocations, increasing exposure to both Bitcoin and gold from 2% to as much as 15%. While still favoring gold, Dalio has acknowledged Bitcoin’s potential as a store of value and likened it to traditional hard assets [1]. His remarks come at a time when the U.S. government is spending significantly more than it earns, with annual interest costs nearing $1 trillion, raising concerns about long-term debt sustainability [2].

The growing interest in Bitcoin is also reflected in the performance of Bitcoin ETFs, which have seen their assets under management rapidly approaching those of gold ETFs. This trend suggests that institutional and retail investors alike are increasingly viewing Bitcoin as a legitimate addition to their diversified portfolios [3]. Meanwhile, gold has reached record highs, driven in part by central bank purchases and continued demand from investors seeking safe-haven assets [3].

Dalio’s warnings extend beyond Bitcoin and gold. He has described the U.S. debt situation as a “debt-induced heart attack” within the next three years, likening the credit system to a clogged circulatory system. With the Federal Reserve facing a difficult choice—raising rates and risking defaults or printing more money to weaken the dollar—he has expressed concerns that political pressures may further erode investor confidence in the U.S. dollar [1]. Trump’s threats to remove Fed Chair Jerome Powell, for example, have raised concerns about artificially low interest rates being maintained for political reasons [1].

The broader market has responded to these macroeconomic challenges with a shift toward alternative assets. Bitcoin recently regained the $110,000 support level, while gold touched an all-time high of $3,578 per ounce. Analysts are increasingly bullish on Bitcoin’s short-term prospects, with some forecasting a price range between $135,000 and $150,000 before the next Federal Reserve meeting [2]. Cryptocurrency investor Cryptocium has noted Bitcoin’s price pattern mirrors its behavior before the September 2024 rate cut, suggesting a potential rally after a period of consolidation [2].

As the debate between Bitcoin and gold continues, investors remain divided. While Bitcoin is often labeled as “digital gold,” its volatility and speculative nature contrast sharply with the historical stability of gold. Some analysts predict that Bitcoin could surpass gold in terms of assets under management, but its ability to maintain long-term value remains unproven [4]. Meanwhile, gold’s performance during inflationary periods and its role as a traditional safe-haven asset continue to attract conservative investors [5].

Source:

[1] Billionaire Ray Dalio: Crypto Is Now Alternative Currency (https://finance.yahoo.com/news/billionaire-ray-dalio-crypto-now-070519526.html)

[2] Bitcoin Price Prediction: Hedge Fund Billionaire Ray Dalio Says Bitcoin Could Replace Dollar (https://icobench.com/news/bitcoin-price-prediction-hedge-fund-billionaire-ray-dalio-says-bitcoin-could-replace-dollar/)

[3] Bitcoin funds may soon be bigger than gold, even as yellow metal sets another round of records (https://www.marketwatch.com/story/bitcoin-funds-may-soon-be-bigger-than-gold-even-as-yellow-metal-sets-another-round-of-records-57edd35a)

[4] Bitcoin vs Gold Correlation (https://newhedge.io/bitcoin/gold-correlation)

[5] Bitcoin vs. Gold: The Ongoing Debate on Value and Viability (https://growthshuttle.com/bitcoin-vs-gold-the-ongoing-debate-on-value-and-viability/)