Bitcoin News Today: Ray Dalio triples Bitcoin-gold portfolio allocation to 15% as U.S. debt hits $36.7 trillion

Hedge fund luminary Ray Dalio has significantly revised his asset allocation strategy, advising investors to allocate 15% of their portfolios to Bitcoin and gold as a safeguard against the U.S. debt crisis [1]. This marks a notable shift from his earlier 1% to 2% Bitcoin recommendation in January 2022. Dalio, founder of Bridgewater Associates, attributed the change to the escalating risks posed by the “debt doom loop,” a term he used to describe the unsustainable trajectory of U.S. fiscal deficits and currency devaluation. According to Treasury data, the national debt has surged to $36.7 trillion, with the government projected to issue an additional $12 trillion in Treasurys over the next year to service existing obligations [1].

A recent U.S. Treasury report corroborates Dalio’s concerns, revealing that the government will need to borrow $1 trillion in the third quarter of 2025—$453 billion more than previously estimated—due to weaker cash flows and declining reserves [1]. This borrowing surge underscores the growing reliance on debt to fund operations, exacerbating fears of a long-term fiscal crisis. Dalio extended his analysis to other Western economies, noting that nations like the United Kingdom face similar challenges, which could further weaken fiat currencies against hard assets like gold and Bitcoin [4].

While Dalio advocates for Bitcoin as a diversifier, his preference for gold remains stronger. He currently holds “some Bitcoin, but not much” and maintains that gold’s historical role as a store of value gives it an edge in this context [1]. However, he emphasized that the exact split between the two assets is a personal decision. The market has responded favorably to his guidance, with Bitcoin trading near $118,100—4% below its all-time high of $123,230—and gold hitting multi-month highs. These trends reflect broader investor interest in assets perceived as inflation hedges amid economic uncertainty [1].

Despite endorsing Bitcoin’s utility in portfolio optimization, Dalio remains skeptical of its potential as a global reserve currency. He cited its transparency—allowing governments to track transactions—as a barrier to adoption by central banks, which prioritize privacy in reserve assets. Additionally, he warned that vulnerabilities in Bitcoin’s code could undermine its viability as an alternative to fiat currencies [1]. This nuanced stance highlights the ongoing debate about cryptocurrency’s role in traditional finance, even among high-profile advocates.

Analysts have interpreted Dalio’s 15% allocation as a signal of heightened caution about systemic risks. The U.S. federal debt’s continued expansion, coupled with Dalio’s track record of identifying macroeconomic trends, lends credibility to his warnings. While some investors may view the recommendation as bullish for Bitcoin, Dalio’s preference for gold suggests a measured approach to cryptocurrency adoption. His critique of Bitcoin’s privacy limitations and transaction transparency underscores the challenges it faces in competing with traditional safe-havens [1].

The recommendation has sparked wider discussions about asset diversification strategies in an era of fiscal uncertainty. As governments globally grapple with unsustainable debt trajectories, Dalio’s advocacy for alternative assets may influence investor behavior. However, the effectiveness of Bitcoin and gold as hedges will depend on how swiftly and comprehensively these risks materialize.

Sources:

[1] Cointelegraph, Ray Dalio Suggests 15% Portfolio Allocation To Bitcoin

[2] AInvest, Ray Dalio triples Bitcoin, gold allocation to 15% amid U.S.

[3] Yahoo.co, UK in 'debt doom loop', top investor Dalio warns

[4] Opalesque, UK is in a debt doom loop, put your cash in gold, says Ray Dalio

[5] Google Finance, Ray Dalio suggests putting 15% in Bitcoin, gold amid US 'debt doom loop'