Dalio Urges 15% Bitcoin-Gold Mix as U.S. Economy Risks Entering ‘Debt Doom Loop’

Ray Dalio Urges 15% Allocation to Bitcoin and Gold as U.S. Debt Pressures Mount

Billionaire investor and Bridgewater Associates founder Ray Dalio has significantly revised his asset allocation strategy, now recommending that investors hold up to 15% of their portfolios in bitcoin and gold. The shift reflects rising concern over what he calls a looming “debt doom loop” in the United States.

“If you’re optimizing for the best return-to-risk profile, you’d put around 15% into gold or Bitcoin,” Dalio said during an appearance on the Master Investor podcast Sunday. This represents a marked increase from his 2022 recommendation of just 1–2% in bitcoin.

Dalio pointed to the U.S.’s growing fiscal imbalance as a key driver behind the move. With national debt exceeding $36.7 trillion and Treasury projections showing $12 trillion in new issuance over the next year, Dalio warned that the U.S. is approaching a critical tipping point.

The Treasury Department on Monday confirmed plans to borrow $1 trillion in Q3—$453 billion more than previously estimated—followed by an additional $590 billion in Q4. That sharp rise in expected borrowing highlights the accelerating pace of fiscal deterioration.

While Dalio maintains a preference for gold, he acknowledged bitcoin’s role as a diversifier in an increasingly unstable macro environment. He emphasized that both assets could hedge against the devaluation of fiat currencies, though he remains cautious about Bitcoin’s limitations as a sovereign reserve asset.

“Governments can monitor transactions on the blockchain,” he noted, raising concerns about privacy and potential vulnerabilities in Bitcoin’s underlying technology.

Dalio said he personally holds “some Bitcoin” and views his 15% allocation as a flexible guideline: “The split between gold and BTC is up to the investor.”

Bitcoin is currently trading around $118,000 in Tuesday’s Asian trading hours.