Ray Dalio Backs Bitcoin, Gold as U.S. Debt Tops $40 Trillion

Billionaire investor Ray Dalio has renewed his support for Bitcoin and gold as portfolio hedges as concerns grow over the United States’ rapidly expanding debt burden. His warning comes after U.S. national debt surpassed $40 trillion, while Bitcoin rallied toward $80,000 for the first time since May.

In a post on X, Dalio said investors should diversify across asset classes and countries with strong financial positions while reducing exposure to debt assets such as bonds. He recommended overweighting gold and maintaining a smaller allocation to Bitcoin as protection against mounting fiscal risks.

Dalio suggested that investors could hold roughly 10% to 15% of their portfolios in gold to help reduce overall risk. His comments arrived during a sharp Bitcoin price recovery, with BTC climbing from around $63,000 earlier in the week to nearly $80,000.

The Bitcoin rally accelerated as the U.S. Treasury announced plans to at least double its purchases of longer-dated government debt through its buyback program. The move followed a surge in the 30-year Treasury yield to its highest level since 2007. Bitcoin subsequently broke above the key $70,000 psychological level as concerns about U.S. government finances intensified.

Dalio warned that the U.S. debt situation is approaching an inflection point and could eventually become extremely difficult to manage. He argued that policymakers should address the problem while economic conditions remain relatively strong because government borrowing requirements typically increase significantly during economic downturns.

Political changes, geopolitical conflicts and other external shocks could also accelerate or delay a potential debt crisis, according to Dalio.

Meanwhile, inflation risks remain elevated amid higher energy prices linked to the U.S.-Iran war. Federal Reserve Chair Kevin Warsh has emphasized price stability as markets assess whether policymakers may need to raise interest rates.

Prediction market data from Polymarket currently indicates a 55% probability that the Federal Reserve will hike rates this year. Higher rates could create renewed pressure on Bitcoin and other risk assets, even as investors increasingly consider BTC and gold as alternatives amid concerns over U.S. debt.