Investment icon Ray Dalio has publicly recommended diversifying portfolios with Bitcoin and gold amid escalating U.S. debt concerns. He advocates allocating 15% of investment holdings to these assets collectively, allowing individual investors to determine the exact split between the two.
This counsel emerges alongside projections from the U.S. Treasury, which anticipates borrowing an additional $1 trillion in Q3 2025 and $590 billion in Q4. Mounting debt levels have intensified fears of currency devaluation, fueling demand for inflation-resistant assets.
Both Bitcoin and gold prices reflect this uncertainty. Bitcoin recently traded near $118,100 while gold achieved multiple record highs. Despite endorsing Bitcoin as a partial hedge, Dalio expressed reservations about its volatility and transaction limitations hindering its viability as a reserve currency.
The recommended allocation strategy targets protection against diminishing purchasing power and U.S. fiscal instability, positioning Bitcoin and gold as critical safeguards in a turbulent economic climate.