Bitcoin News Today: Ray Dalio boosts Bitcoin allocation to 15% amid U.S. debt crisis and inflation fears

Billionaire investor Ray Dalio has significantly revised his stance on Bitcoin, now recommending up to 15% of an investor's portfolio be allocated to Bitcoin or gold to hedge against inflation and the growing U.S. debt crisis [1]. This marks a sharp increase from his earlier 2022 advice, which limited Bitcoin exposure to just 2%. Dalio’s updated position is rooted in his belief that the U.S. is entering a "debt doom loop," with $12 trillion in new debt expected to be issued over the next year [1].

The U.S. national debt has already surpassed $36.7 trillion, with projections indicating the government will borrow $1 trillion in Q3 alone, far exceeding earlier expectations [1]. In this environment, Dalio sees Bitcoin and gold as critical tools for preserving capital. He emphasized this point in a recent podcast, stating that for risk-adjusted returns, a 15% allocation to hard assets like Bitcoin or gold is optimal [1].

While Dalio maintains a slight preference for gold, he acknowledges Bitcoin’s growing appeal as a store of value in an era of declining trust in fiat currencies [1]. However, he cautions against viewing Bitcoin as a fully-fledged reserve asset, citing concerns about blockchain transparency, code vulnerabilities, and regulatory uncertainty [1].

Dalio is not the only prominent figure advocating for Bitcoin as an inflation hedge. U.S. Senator Cynthia Lummis has also endorsed the asset as a tool for protecting working-class Americans against the rising cost of living [1]. These endorsements signal a broader shift in institutional and political attitudes toward Bitcoin, with more investors and policymakers considering it as part of their long-term wealth strategies.

From a technical perspective, Bitcoin (BTC/USD) is currently trading at $118,386, forming a symmetrical triangle pattern on the 4-hour chart. The price is consolidating near the apex of this pattern, with the 50 EMA at $118,075 indicating a balance between bullish and bearish pressures [1]. Momentum indicators such as the RSI are at 53, showing no overbought or oversold conditions, while a slight bullish divergence suggests bearish momentum may be waning [1].

A breakout above the $120,283 resistance level could push the price toward $122,845 or $125,111. Conversely, a drop below $118,000 could lead to a pullback to $116,513 or $114,532 [1]. Traders are advised to wait for confirmation before entering positions, as triangles often trap early movers.

Meanwhile, a Bitcoin Layer 2 project called Bitcoin Hyper ($HYPER) has raised over $6 million in its public presale, reaching $6,098,717 of a $7,004,929 target. The project, which combines Bitcoin’s security with Solana’s speed, aims to facilitate fast, low-cost smart contracts and dApps [1]. With audits completed and a full rollout expected in Q1 2025, Bitcoin Hyper is emerging as a notable contender in the Layer 2 space [1].

Source: [1] Bitcoin Price Prediction: Billionaire Investor Ray Dalio Backs Bitcoin as U.S. Prints Trillions – Best Inflation Hedge? (https://cryptonews.com/news/bitcoin-price-prediction-billionaire-investor-ray-dalio-backs-bitcoin-as-u-s-prints-trillions-best-inflation-hedge-bh-https-www-cointribune-com-en-ray-dalio-advocates-bitcoin-and-gold-as-infl/)