Ray Dalio Warns of U.S. Bond Risks as Bitcoin Eyes $110,000

Ray Dalio, the founder of Bridgewater Associates, recently highlighted the underestimation of risks associated with U.S. bonds. On May 20th, Dalio cautioned that the downgrade of the U.S. credit rating by Moody's does not adequately reflect the true risks involved with U.S. debt. He pointed out that the U.S. government might resort to "printing money to pay debt," which could result in currency devaluation and diminish the real purchasing power of bondholders. This view has prompted a reevaluation of U.S. debt risks, as all three major rating agencies have downgraded the U.S. rating.

According to a Bitunix analyst, Dalio's warning about the risk of "printing money to pay debt" indicates that investors may increasingly look for assets that are resistant to inflation and not tied to any sovereign entity. Cryptocurrencies, with their decentralized structure and limited supply, are seen as potential safe havens in this scenario. The analyst suggested that if Bitcoin (BTC) can sustain support at $100,000, it may test the historical high of $110,000 in the near term. This outlook is based on the combined risks of credit concerns and currency devaluation.

Investors are advised to concentrate on major cryptocurrencies such as Bitcoin and Ethereum, and to allocate a portion of their portfolio to application tokens that are independent of the U.S. dollar and have anti-inflation properties. In the short term, investors should monitor changes in bond market yields and signals from U.S. fiscal policy, as these factors will continue to shape market risk appetite and the flow of capital. The analyst's advice emphasizes the potential for cryptocurrencies to act as a safeguard against inflation and currency devaluation, especially in an environment where traditional safe-haven assets like U.S. bonds may be underperforming.