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Ray Dalio urges investors to hold some Bitcoin amid rising U.S. debt risks

Dalio said a U.S. debt crisis could take shape in about three years, and warned that weaker Treasury demand could push rates higher or spur central bank bond buying.

Reported · Written up by our desk · Market Structure

CoinDesk reports that Bridgewater Associates founder Ray Dalio said investors should hold “a bit of Bitcoin” as U.S. government debt risks increase, tying the call to concerns about the dollar and the long term outlook for Treasuries.

Dalio pointed to recent developments in government bond markets that he said align with his debt-crisis framework, including higher long term U.S. bond yields alongside a weaker dollar, Japan selling some U.S. Treasury holdings, and Treasury Secretary Scott Bessent announcing increased buybacks of U.S. bonds.

He argued that when demand for government debt thins, governments tend to buy back their own bonds, while limited buyback capacity could leave investors more sensitive to Treasury demand and yield moves.

Dalio also estimated that the U.S. expects roughly $5.5 trillion in revenue this year versus about $7.5 trillion in spending, leaving a deficit near $2 trillion, and he projected interest costs around $1 trillion, adding that he sees a debt crisis emerging in roughly three years.

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