Bitcoin News Today: Dalio Urges 15% Bitcoin/Gold Allocation as U.S. Debt Nears $37 Trillion

Billionaire Ray Dalio, founder of Bridgewater Associates, has urged investors to allocate 15% of their portfolios to Bitcoin or gold as the U.S. grapples with a looming debt crisis. With national debt approaching $37 trillion, Dalio argued during the Master Investor podcast that hard assets like gold and Bitcoin could serve as a buffer against the devaluation of fiat currency. His remarks, cited in a recent report, underscore growing concerns over the sustainability of U.S. debt and the risks of overreliance on paper money [1].

Dalio highlighted that the U.S. government may need to issue an additional $12 trillion in Treasuries over the next year to manage its growing obligations. Recent Treasury data suggests borrowing in the third quarter of 2025 could reach $1 trillion—$453 billion above previous estimates—with another $590 billion projected for the fourth quarter. He warned that excessive debt issuance risks weakening the dollar, reinforcing the need for diversification into non-sovereign assets like Bitcoin and gold [1].

While Dalio personally favors gold—citing its centuries-old track record as a hedge against inflation and economic crises—he acknowledged Bitcoin’s potential as a complementary asset. Bitcoin’s price, currently trading at $118,862, has declined 4% from its July 14 all-time high of $123,250. Dalio noted that Bitcoin’s volatility could deter risk-averse investors but stressed that portfolio allocation should reflect individual tolerance for price swings. Investors averse to sharp fluctuations might lean toward gold, while those comfortable with Bitcoin’s volatility could allocate a larger portion to the cryptocurrency [1].

The billionaire’s updated stance—raising his Bitcoin allocation recommendation from 1% to 15%—reflects a shift in sentiment amid escalating debt concerns. Dalio also highlighted that other Western economies, including the U.K., face similar “debt doom loops,” where rising borrowing costs and currency depreciation amplify the need for alternative assets. However, he clarified that Bitcoin is unlikely to replace the U.S. dollar or euro as a reserve currency, citing the lack of privacy in public blockchain transactions. Unlike gold, which can be transacted privately, Bitcoin’s transparent ledger leaves room for government surveillance, limiting its role as a fully decentralized alternative [1].

Dalio’s comments align with broader discussions about the role of Bitcoin in a debt-impacted global economy. While the cryptocurrency’s potential as a hedge remains speculative, its integration into mainstream portfolios has gained traction as traditional assets face headwinds. The U.S. debt trajectory, however, remains a critical uncertainty, with outcomes dependent on fiscal policy and market confidence.

Sources:

[1] Bitcoin Is A Lifeline, Says Billionaire, As US Faces Debt Time Bomb (https://www.newsbtc.com/bitcoin-news/bitcoin-is-a-lifeline-says-billionaire-as-us-faces-debt-time-bomb/)