Ray Dalio, founder of Bridgewater Associates, has advised investors to consider allocating up to 15% of their portfolios to Bitcoin and gold as a safeguard against the U.S. debt crisis and currency devaluation risks. This recommendation, announced on July 29, 2025, reflects growing concerns over the U.S. national debt, which has surpassed $36.7 trillion, and the increasing reliance on borrowing to fund deficits. Dalio emphasized that this allocation strategy aims to optimize the return-to-risk ratio in an environment marked by fiscal uncertainty [1].
The U.S. Treasury’s latest projections highlight the urgency of such a move. The agency reported an anticipated $1 trillion in additional borrowing during the third quarter of 2025, significantly exceeding previous forecasts by $453 billion. Further, $590 billion in borrowing is expected for the fourth quarter, underscoring the government’s expanding debt burden. These figures align with Dalio’s warnings about the potential devaluation of the U.S. dollar and the need for diversified portfolios [2]. He noted that similar “debt doom loop” challenges are emerging in other Western nations, including the United Kingdom, reinforcing the global relevance of this strategy [3].
Dalio’s stance represents a shift from his earlier, more cautious recommendations. In early 2022, he suggested allocating just 1-2% to Bitcoin. The updated 15% figure reflects escalating worries about the sustainability of fiscal policies and the erosion of purchasing power. While personally holding Bitcoin, Dalio expressed a preference for gold due to its established track record and stability. However, he acknowledged that the exact allocation between the two assets is ultimately a personal decision for investors [4].
Despite endorsing Bitcoin as a hedge, Dalio remains skeptical about its potential as a reserve currency. He highlighted concerns over Bitcoin’s transparent ledger, which allows governments to track transactions—a feature he believes could deter central banks from adopting it as a reserve asset. Additionally, he pointed to potential vulnerabilities in Bitcoin’s code that might undermine its long-term viability in this role [5].
Market trends have bolstered the case for Bitcoin and gold as stores of value. Bitcoin has surged to approximately $118,100, just 4% below its all-time high of $123,230 recorded on July 14, 2025. Gold has similarly reached multiple new highs in recent months, reinforcing its status as a preferred asset during periods of economic instability [6].
Dalio’s analysis underscores a strategic approach to portfolio diversification amid systemic risks. By allocating 15% to Bitcoin and gold, investors can mitigate exposure to fiat currency devaluation and fiscal volatility. However, the practical adoption of Bitcoin as a reserve asset remains constrained by its transparency and code-related challenges. This duality—Bitcoin’s utility as a diversifier versus its limitations as a reserve currency—highlights the nuanced considerations investors must weigh [7].
The implications of Dalio’s recommendation are significant for global markets. As U.S. debt continues to rise and central banks grapple with inflationary pressures, demand for alternative assets may increase. Yet, the role of Bitcoin in this landscape remains contingent on addressing its structural challenges. For now, the focus remains on its function as a hedge rather than a systemic replacement for traditional reserves [8].
Source: [1] [Ray Dalio Suggests Considering 15% Bitcoin Allocation Amid US Debt Concerns and Currency Risks](https://en.coinotag.com/ray-dalio-suggests-considering-15-bitcoin-allocation-amid-us-debt-concerns-and-currency-risks/) [2] [US Treasury Report Highlights Growing Debt and Borrowing Needs](https://en.coinotag.com/ray-dalio-suggests-considering-15-bitcoin-allocation-amid-us-debt-concerns-and-currency-risks/) [3] [Why Ray Dalio Remains Skeptical About Bitcoin as a Reserve Currency](https://en.coinotag.com/ray-dalio-suggests-considering-15-bitcoin-allocation-amid-us-debt-concerns-and-currency-risks/) [4] [Dalio’s Portfolio Strategy and Preference for Gold](https://en.coinotag.com/ray-dalio-suggests-considering-15-bitcoin-allocation-amid-us-debt-concerns-and-currency-risks/) [5] [Bitcoin and Gold Reach New Highs Amid Economic Uncertainty](https://en.coinotag.com/ray-dalio-suggests-considering-15-bitcoin-allocation-amid-us-debt-concerns-and-currency-risks/) [6] [Ray Dalio Suggests Considering 15% Bitcoin Allocation Amid US Debt Concerns and Currency Risks](https://en.coinotag.com/ray-dalio-suggests-considering-15-bitcoin-allocation-amid-us-debt-concerns-and-currency-risks/) [7] [Conclusion](https://en.coinotag.com/ray-dalio-suggests-considering-15-bitcoin-allocation-amid-us-debt-concerns-and-currency-risks/) [8] [Key Takeaways](https://en.coinotag.com/ray-dalio-suggests-considering-15-bitcoin-allocation-amid-us-debt-concerns-and-currency-risks/)
