Dalio Warns of Financial Crisis as Bitcoin Nears $80K

Ray Dalio has warned investors to go underweight bonds and hold 10% to 15% of their portfolio in gold, while adding a 'bit' of Bitcoin due to the government's financial condition being at an inflection point.

Dalio believes that if this issue is not addressed now, debts will build up to unmanageable levels within three years, with debt service reaching $11 trillion, about 200% of annual revenue, and federal spending running 40% above what Washington collects.

Despite Dalio's warning, some experts remain optimistic about Bitcoin's prospects. Geoff Kendrick, Standard Chartered's global head of digital assets research, has cut his end-of-year forecast for Bitcoin from $150,000 to $100,000 and now sees a retest of the cryptocurrency's record price of $126,000.

Kendrick attributes this positive outlook to the Treasury's decision to double its long-bond buybacks, which he believes is exactly what Bitcoin loves. Bessent told CNBC that his team was going to 'make a market' in long-dated debt, with purchases likely to top $4 billion.