Ray Dalio Advises 15% Allocation in Bitcoin or Gold Amid Soaring U.S. Debt

American billionaire investor Ray Dalio has recommended that investors consider allocating up to 15% of their portfolios in Bitcoin or gold, as a hedge against rising national debt and currency devaluation in the United States.

Speaking on the Master Investor podcast on Sunday, the founder of Bridgewater Associates warned of a worsening economic environment that could erode the value of traditional assets.

“[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 stated, emphasizing the importance of diversifying into hard assets. 

Although he acknowledged holding a small amount of BTC himself, Dalio reaffirmed his preference for gold over the digital asset. The proportion between the two, he noted, should be left to individual investor discretion.

Dalio’s updated recommendation marks a notable increase from the 1–2% Bitcoin exposure he proposed back in January 2022. The shift underscores growing concerns over America’s ballooning debt, which now stands at $36.7 trillion, according to U.S. Treasury data.

Debt Spiral Raises Demand for Hard Assets

Dalio’s remarks come at a time when the U.S. Treasury has projected unprecedented levels of borrowing. A report released on Monday estimated $1 trillion in new debt for the third quarter of 2025—$453 billion higher than earlier forecasts—due to weaker cash flows and dwindling reserves. 

An additional $590 billion is expected to be borrowed in Q4, highlighting the federal government’s increasing dependence on debt financing.

“The issue is the devaluation of money,” Dalio cautioned, adding that the U.S. will likely need to issue another $12 trillion in Treasurys over the next year. He warned that this strategy could lead to a “debt doom loop,” a concern he believes also applies to other developed nations like the United Kingdom.

Bitcoin and Gold Show Strength in Uncertain Times

Dalio considers Bitcoin and gold to be “effective diversifiers” in a portfolio, especially in economies grappling with inflation and fiscal instability. However, he expressed skepticism about Bitcoin’s suitability as a reserve currency, citing its lack of privacy and transparency of transactions as drawbacks. 

Both Bitcoin and gold have been performing strongly in recent months. BTC is trading around $118,100, just 4% shy of its all-time high of $123,230 recorded on July 14. 

Meanwhile, gold continues to notch record highs, driven by investor appetite for safe-haven assets in a volatile global economy.

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