As Ray Dalio Signals Global Systemic Risks, Bitcoin Proves Its Resilience.

Dalio Warns of Global Economic Breakdown, Bitcoin Emerges as Resilient Safe Haven

Ray Dalio, the founder of Bridgewater Associates, is raising urgent concerns about the state of the global economy, warning of a potential systemic collapse that could be more severe than a typical recession. In an interview with CNBC on Sunday, Dalio highlighted the deep vulnerabilities within the current economic and political structures, suggesting that these risks could lead to major disruptions.

Despite Dalio’s grim predictions, Bitcoin (BTC) has been showing resilience in the face of this uncertainty. The cryptocurrency has recently broken its three-month downtrend and is approaching $85,000, signaling that it may be positioning itself as a possible alternative safe-haven asset amid the turbulence.

The global markets are grappling with rising volatility, driven by uncertainties surrounding U.S. tariff policies, which continue to create chaos. President Trump’s shifting stance on tariffs has kept traders on edge, particularly in the wake of recent policy changes, which have resulted in fluctuating market conditions.

Dalio’s primary concern centers around the U.S.’s escalating debt and growing federal deficit, which he believes could destabilize the broader financial system. He has called for urgent action from Congress to address the federal deficit, suggesting that failure to reduce it to 3% of GDP could result in severe economic dislocations and market turmoil. According to Dalio, the imbalance between debt supply and investor demand poses a significant risk to the global financial system.

This concern is reflected in the bond market, where U.S. Treasury yields are rising. The 10-year yield is nearing 4.5%, while the 30-year yield is hovering just below 5%, adding to the market’s unease and fueling concerns that the Federal Reserve may have to intervene.

Dalio also pointed out the ongoing uncertainty surrounding tariffs, which has contributed to instability in the U.S. dollar. The DXY index has dropped below 100 for the first time in several years, potentially indicating capital flight from the U.S. Dalio has urged for a comprehensive trade agreement with China and adjustments to the currency system, particularly a strengthened yuan, to help stabilize the global financial order.

In drawing comparisons to past crises, Dalio likened the current situation to pivotal moments in history, such as the U.S. exit from the gold standard in 1971 and the 2008 financial crisis. Both of these events led to significant transformations in the global economic system, and Dalio believes we are once again at a critical juncture that could reshape the future of finance.