Bridgewater founder Ray Dalio said on Aug. 22 that investors should reduce bond exposure and use non-government assets such as gold and Bitcoin to hedge rising U.S. debt pressure.
Dalio said portfolios could hold about 10% to 15% in gold and “some” Bitcoin to help reduce debt-crisis risk and support long-term returns. He said Bitcoin and other non-sovereign monetary assets may benefit as the global debt cycle reaches a critical stage.
Dalio said U.S. government revenue is expected to reach about $5.5 trillion this year, while spending will total $7.5 trillion, leaving a fiscal gap of roughly $2 trillion. He added that U.S. interest payments are expected to come close to $1 trillion, and about $10 trillion of debt faces refinancing pressure.
He warned that if fiscal policy is not adjusted, a U.S. debt crisis could arrive in “about three years, plus or minus two years.” As debt-servicing pressure rises, the government may be forced to accept higher interest rates or rely on a central bank balance sheet expansion to buy debt, which could weaken currency values and push inflation higher.
U.S. long-term Treasury yields recently climbed to multi-year highs. Treasury Secretary Scott Bessent announced an expansion of the buyback program for long-term Treasuries, but the market sees the move as only a short-term support measure that does not address structural fiscal problems.
Bitcoin recently moved above $77,000, helped by a weaker dollar, improved liquidity expectations and safe-haven demand, and is heading for one of its strongest weekly gains since 2023. Dalio said: “Non-government-issued monetary assets, such as gold and Bitcoin, are expected to do well.”
The comments add to market attention on Bitcoin’s “digital gold” narrative, as investors increasingly view it as an asset for hedging currency debasement and long-term fiscal risk.