Ray Dalio of Bridgewater Associates recommends allocating to Bitcoin and gold to hedge risks, warning that a U.S. debt crisis is approaching.

Bridgewater Associates founder Ray Dalio said that as U.S. debt pressures continue to rise, investors should reduce bond allocations and hedge risks with non-government-issued assets like gold and Bitcoin. Dalio recently noted that portfolios can allocate around 10%-15% to gold and hold "a portion" of Bitcoin to mitigate debt crisis risks and boost long-term returns. He believes that as the global debt cycle enters a critical phase, non-sovereign currency assets like Bitcoin may benefit. Dalio pointed out that the U.S. government is projected to collect about $5.5 trillion in revenue this year, with $7.5 trillion in spending, leaving a fiscal gap of roughly $2 trillion. Meanwhile, U.S. interest payments are expected to nearly hit $1 trillion, and about $10 trillion in debt faces refinancing pressure. He warned that if fiscal policies are not adjusted, a U.S. debt crisis could emerge "in roughly the next three years (plus or minus two years)." As debt servicing pressures mount, the government may be forced to accept higher interest rates or rely on central bank balance sheet expansion to buy debt, which would erode currency values and drive up inflation. Recently, U.S. long-term Treasury yields have risen to multi-year highs, and U.S. Treasury Secretary Scott Bessent announced an expansion of the long-term U.S. Treasury buyback program, but markets view this measure as only providing short-term support, not solving structural fiscal issues. Driven by a weaker dollar, improved liquidity expectations, and safe-haven demand, Bitcoin recently broke through $77,000, posting one of its strongest weekly gains since 2023. Dalio stated: "Non-government-issued monetary assets, such as gold and Bitcoin, are expected to perform well." These remarks have further strengthened market attention on Bitcoin's "digital gold" narrative, with investors viewing it as a key asset to hedge against currency devaluation and long-term fiscal risks.