Bridgewater Associates founder Ray Dalio advised investors to allocate between 10% and 15% of their portfolios to gold and a small amount of Bitcoin as protection against a potential U.S. debt crisis.
In a LinkedIn post published Friday, Dalio warned that internal political and external geopolitical conflicts increase the likelihood of a debt crisis within the next three to five years unless current fiscal policies are adjusted. He characterized his forecast as a pessimistic outlook, suggesting that the U.S. could face significant financial instability if the trajectory remains unchanged.
Dalio has historically expressed skepticism about Bitcoin’s long-term viability as a store of value, citing concerns over privacy and quantum computing threats. However, he has gradually softened his stance, noting in July 2025 that he held a limited position in Bitcoin while recommending allocations of up to 15% in both gold and the cryptocurrency. In 2022, he suggested that holding 1% to 2% of a portfolio in Bitcoin was a reasonable strategy.
The hedge fund manager’s latest remarks align with his prior calls for diversification away from traditional debt assets like bonds, emphasizing the need for assets that can preserve value amid rising fiscal risks.
