"Dalio Warns: US Debt Crisis Looms, Bitcoin Surges Amid Market Turmoil"
1min read The United States, with its cycle of growing debt and debt servicing, may face a financial crisis in the next few years. Ray Dalio, the billionaire investor and founder of bridgewater Associates, has boldly claimed a looming debt crisis, likening it to a "potential heart attack" if authorities fail to provide interventions.
Dalio's insights on the current economic landscape and the country's looming debt crisis come as the crypto market cap drops to $2.76 trillion in one day. During the market shakeoff this week, the overall crypto market cap dropped by 8%, with Ethereum and Bitcoin leading the losers with 11% and 8%, respectively.
The US is currently facing a growing debt and excessive budget deficits. According to recent data, the country's national debt is now $33.6 trillion, with a massive deficit of $1.7 trillion in 2023, equal to 5.8% of the total GDP. Researchers are also warning about the increasing cost of servicing the debt, hitting $879 billion in 2023, comparable to the size of the country's budget for national defense.
In an interview on the Odds Lots podcast, Dalio offered insights on how the general public responds to an economic crisis. He mentioned that in times of economic uncertainties, many investors are looking at alternative stores of value. Dalio asks: What’s an alternative to money with a stable supply? He mentioned the growing role of Bitcoin and digital assets as leverage against inflation.
Dalio’s insights followed US President Trump’s announcement on the proposed US strategic reserve, which includes top coins such as Bitcoin, Ethereum, Solana, Ripple, and Cardano. Trump’s statement was followed by a spike in crypto prices, with Bitcoin surging to over $90k after revisiting $80k.
While Bitcoin’s price surged for the day, its dominance dipped from 55.4% to 50%, reflecting the shift in capital to altcoins. Historically, a decline in Bitcoin’s dominance catalyzes an altcoin run, which now excites many on social media.
Although Ray Dalio didn’t categorically mention Bitcoin as the “potential savior”, his recent statements suggest a favorable view on the premier digital asset. Due to its decentralization, Dalio highlighted the 