Bitcoin Surges 23% on Ray Dalio's Debt Crisis Warning
Bitcoin surged about 23% in price over a short period following Ray Dalio's warning of a potential US debt crisis within three years. The billionaire investor and founder of Bridgewater Associates predicted that the federal debt could surpass $40 trillion, which he believed would lead to a significant increase in long-term yields and fiscal uncertainty.
Dalio advised investors to reduce their bond holdings and allocate 10-15% of their portfolios to gold, with a smaller portion going to Bitcoin. He highlighted these assets as non-government alternatives that can protect against currency and debt risks.
The US Treasury's announcement to increase long-term debt buybacks failed to ease concerns, reinforcing fears of a growing debt spiral. This rally positions Bitcoin as a macro hedge amid rising long-term yields and fiscal uncertainty, with similar debt pressures noted in other major economies.