Billionaire investor and Bridgewater Associates founder Ray Dalio has warned that the United States could face a debt crisis within the next three years, urging investors to reduce bond holdings and consider gold and Bitcoin as protective assets.
In a recent LinkedIn post, Dalio said the U.S. and other major economies including the United Kingdom, the European Union, China and Japan are dealing with similar debt and deficit problems. He described the situation as approaching a critical stage of the long-term debt cycle, pointing to weakening demand for government debt, rising long-term bond yields and continued monetary expansion.
Dalio's allocation advice: He recommends investors allocate 10% to 15% of their portfolios to gold, while also holding "a bit of Bitcoin." He stated that he expects Bitcoin to "do relatively well" because governments around the world are grappling with large fiscal deficits and rising debt.
Dalio has personally owned Bitcoin since at least May 2021 and has previously called it an "interesting gold-like asset alternative." By November 2025, he disclosed that Bitcoin had represented roughly 1% of his portfolio for years. Despite his supportive comments, he has repeatedly warned that Bitcoin may struggle to become a major reserve asset due to financial privacy concerns, the potential threat of quantum computing and other risks.
His latest remarks add weight to the view that Bitcoin can serve as a hedge against currency debasement, even as Dalio continues to say gold remains his preferred safe-haven asset.
