Bitcoin News Today: Ray Dalio Urges 15% Bitcoin and Gold Allocation as U.S. Debt Hits 125% of GDP

Ray Dalio, founder of Bridgewater Associates, has revised his investment guidance to recommend a 15% allocation of portfolios to Bitcoin or gold, a significant increase from his earlier 1–2% advisory. The shift reflects heightened concerns over U.S. fiscal health, with the country’s debt exceeding 125% of GDP and a deficit of 7% of GDP—the highest among industrialized nations. Dalio warns of a potential “debt doom loop” and “economic heart attack” if the deficit is not reduced to 3% of GDP within three years [1]. His comments, shared across platforms including the Master Investor Podcast and Yahoo Finance, highlight the risk of a “classic devaluation” scenario akin to historical crises in the 1930s or 1970s [2].

The updated advice positions Bitcoin and gold as strategic hedges against currency depreciation. Dalio described gold as the “purest play” for preserving wealth, while acknowledging Bitcoin’s role as a decentralized store of value and global transactional tool. However, he emphasized a stronger preference for gold, noting his personal holdings in the asset significantly outweigh those in Bitcoin [2]. The recommendation aligns with broader institutional skepticism about digital assets’ stability and regulatory risks, though it also signals growing acceptance of Bitcoin as a macroeconomic hedge.

Dalio’s “3% solution” proposes immediate fiscal adjustments through tax increases and spending cuts to stabilize the U.S. economy. He warned that without intervention, hard assets like gold and Bitcoin could outperform fiat currencies during periods of prolonged instability. This perspective mirrors trends seen in 2020–2021, when similar fiscal anxieties drove interest in crypto markets [1]. Analysts suggest the 15% allocation could validate Bitcoin’s emerging role in institutional portfolios, though its inclusion at a smaller scale than gold underscores lingering caution.

For investors, the guidance underscores a pivot toward risk-off assets amid inflationary pressures and geopolitical uncertainties. Dalio stressed that the allocation should be part of a diversified, risk-aware strategy rather than a speculative bet. His comments align with broader discussions about the future of monetary systems, as high-profile figures and institutions increasingly explore Bitcoin’s potential as a hedge [2].

The recommendation has sparked debate about the evolving role of digital assets in traditional investment frameworks. While gold remains a staple of diversification strategies, Bitcoin’s inclusion—albeit at a smaller scale—reflects a paradigm shift in how some investors approach risk management. However, Dalio’s emphasis on gold over Bitcoin highlights the market’s mixed reception to digital assets, with regulatory and volatility concerns persisting [1].

Sources:

[1] Billionaire Ray Dalio Backs 15% Allocation to Bitcoin and Gold Amid U.S. Debt Spiral (CoinDesk, https://www.coindesk.com/markets/2025/07/29/billionaire-ray-dalio-backs-15-allocation-to-bitcoin-and-gold-amid-u-s-debt-spiral)

[2] Ray Dalio Says 15% In Bitcoin Or Gold May Be Essential As Fiat Currencies Face Devaluation Risks (Yahoo Finance, https://finance.yahoo.com/news/ray-dalio-says-15-bitcoin-003103801.html)