Ray Dalio Turns Bearish on USD and U.S. Bonds — Pushes Bitcoin and Gold as Safe Havens

TradingKey – In a recent interview, Bridgewater Associates founder Ray Dalio expressed a bearish outlook on the U.S. dollar and Treasury bonds, urging investors to allocate at least 15% of their portfolios to Bitcoin (BTC) or gold (XAUUSD) as a hedge against mounting macroeconomic risks.

According to Dalio, the U.S. government is spending 40% more than it earns, and with no realistic path to cutting expenditures, it will likely resort to printing money and issuing more debt.

• He believes this fiscal imbalance is not yet priced into markets, and could lead to a sharp downturn.
• Dalio emphasized that rising debt levels in the U.S. and other Western economies pose systemic risks that investors should not ignore.

To protect against fiat currency devaluation and bond market instability, Dalio recommends:

• Allocating 15% of one’s portfolio to Bitcoin or gold
• He personally holds both assets, stating: “I own gold and a little Bitcoin, but not much.”
• While he prefers gold, he acknowledges Bitcoin’s role as an effective diversifier in today’s environment

Both assets have delivered robust returns this year:

• Bitcoin (BTC): Up ~27%, currently trading at $118,931
• Gold (XAUUSD): Also up ~27%, now priced at $3,321/oz

These gains reflect growing investor demand for hard assets amid concerns over U.S. debt sustainability and currency depreciation.