Ray Dalio Ups Bitcoin and Gold Allocation Guidance to 15% Amid U.S. Debt Spiral Fears

Bridgewater Associates founder Ray Dalio has significantly increased his recommended exposure to bitcoin and gold, advising investors to allocate up to 15% of their portfolios to the two assets as the U.S. grapples with soaring debt levels and the risk of long-term currency debasement.

“If you were optimizing your portfolio for the best return-to-risk ratio, you would have about 15% of your money in gold or Bitcoin,” Dalio said during a Sunday appearance on the Master Investor podcast.

The guidance marks a substantial shift from his 2022 stance, when he advised a modest 1–2% allocation to bitcoin. The change underscores growing concern over what Dalio now describes as a “debt doom loop” — a dangerous cycle fueled by ballooning government borrowing and interest payments.

Dalio’s comments come as new data from the U.S. Treasury reveals a worsening fiscal picture. On Monday, the department said it expects to borrow $1 trillion in Q3 alone — $453 billion more than previously projected — followed by an additional $590 billion in Q4. Altogether, the government is preparing to issue up to $12 trillion in new Treasurys over the next year to manage its $36.7 trillion national debt.

While Dalio continues to prefer gold over bitcoin, he called both assets “effective diversifiers” against weakening fiat currencies. However, he reiterated his reservations about bitcoin’s potential as a global reserve asset, citing blockchain transparency and the possibility of technical vulnerabilities.

“Governments can see who is doing what transactions,” Dalio said. “That level of surveillance raises concerns, and code flaws could still threaten bitcoin’s integrity as an alternative currency.”

Dalio acknowledged owning “some Bitcoin” himself, but emphasized flexibility in his 15% allocation guidance. “How much goes to BTC versus gold is up to you,” he said.

Bitcoin was trading above $118,000 during Tuesday’s Asian session.