Ray Dalio Backs 15% Allocation to Bitcoin and Gold Amid U.S. Debt Concerns
Bridgewater Associates founder Ray Dalio is urging investors to allocate up to 15% of their portfolios to bitcoin and gold, citing growing risks tied to the U.S.’s mounting national debt and weakening currency outlook.
“If you’re optimizing for return relative to risk, you’d hold about 15% in gold or Bitcoin,” Dalio said in a Sunday interview on the Master Investor podcast. His updated view marks a significant shift from his 2022 guidance, which suggested only a 1–2% allocation to BTC.
Dalio’s warning centers on what he calls a “debt doom loop,” driven by soaring Treasury issuance needed to manage the U.S.’s $36.7 trillion debt load. The U.S. Treasury on Monday revealed it expects to borrow $1 trillion in Q3—$453 billion more than previously projected—and another $590 billion in Q4.
Dalio described both bitcoin and gold as strategic hedges against long-term inflation and fiat currency devaluation. Though he expressed a continued preference for gold, he acknowledged bitcoin’s growing relevance as a diversifying asset in a deteriorating macro environment.
However, Dalio also flagged concerns about bitcoin’s transparency, noting that blockchain surveillance and potential protocol vulnerabilities could challenge its use as a global reserve asset.
“Governments can monitor transactions, which raises questions around privacy and resilience,” he said.
While Dalio confirmed he holds a personal bitcoin position, he emphasized that the 15% allocation should be flexible. “How you split it between BTC and gold is up to you,” he added.
As of Tuesday morning in Asia, Bitcoin was trading just above $118,000.
