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Ray Dalio, founder of Bridgewater Associates, has recently suggested increasing portfolio allocations to Bitcoin and gold, citing concerns over U.S. dollar devaluation and rising inflation risks [1]. His comments follow recent statements by U.S. President Donald Trump, who has reportedly pushed for weaker dollar policies, including lower real interest rates, creating tensions with Federal Reserve Chair Jerome Powell, who aims to preserve currency strength [2]. Dalio’s analysis highlights a potential shift in monetary policy and the associated implications for global markets.
According to Dalio, the U.S. dollar faces the risk of debasement due to increasing government debt and the potential for inflationary pressures. He recommends raising investments in Bitcoin and gold from 1-2% to as high as 15% of a portfolio to hedge against these risks [3]. This strategy aligns with his broader economic perspective, which includes reference to historical inflation cycles, particularly those seen in the 1970s and 1980s, when currency devaluation led to increased demand for safe-haven assets [4].
The market has responded with growing interest in Bitcoin, particularly as crypto ETFs have seen heightened institutional demand in July 2025 [5]. This trend reflects a broader acceptance of digital assets as part of diversified investment strategies, especially amid macroeconomic uncertainty and evolving monetary policies [6]. Investors are increasingly viewing cryptocurrencies like Bitcoin, which operate on decentralized peer-to-peer networks, as potential alternatives to traditional fiat currencies [7].
Dalio’s advocacy for Bitcoin underscores a shift in institutional thinking, as more investors re-evaluate traditional asset allocations in response to concerns about the long-term stability of the U.S. dollar. His comments are expected to further fuel interest in Bitcoin and gold, particularly among those concerned about the implications of rising U.S. debt and the dollar’s global role [8].
Sources:
[1] Cointribune, [https://www.cointribune.com/en/crypto-etfs-set-records-in-july-as-institutional-demand-surges/](https://www.cointribune.com/en/crypto-etfs-set-records-in-july-as-institutional-demand-surges/)
[3] Coinpedia, [https://coinpedia.org/crypto-live-news/](https://coinpedia.org/crypto-live-news/)
[4] MLQ.ai, [https://mlq.ai/news/](https://mlq.ai/news/)
[5] OKX, [https://www.okx.com/price/gold-gold](https://www.okx.com/price/gold-gold)
[7] wallstreetmediaco.net, [https://wallstreetmediaco.net/the-future-of-the-us-dollar/](https://wallstreetmediaco.net/the-future-of-the-us-dollar/)

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