Ray Dalio Issues Stark Warning as Bitcoin Price Climbs Back to $85K

Bitcoin has once again surged past the $85,000 mark, reigniting excitement across the crypto space. But while many celebrate the digital asset’s upward momentum, billionaire investor and Bridgewater Associates founder Ray Dalio has sounded a serious alarm about the broader economic backdrop. 

In a recent interview, Dalio warned that the United States is heading toward a “very risky” economic future due to spiraling national debt, an issue he believes investors should not ignore, even amid crypto gains.

America’s Ballooning Debt: A Crisis in the Making?

Dalio’s main concern revolves around the ever-growing U.S. national debt, which now exceeds $33.6 trillion. According to him, the cost of servicing this debt—interest payments alone—is climbing at an alarming rate, almost equaling what the U.S. spends on national defense. With no long-term strategy to rein in this fiscal imbalance, Dalio fears that the country could soon lose control of its financial future.

“This is not sustainable,” Dalio warned. “Eventually, either taxes will rise, the dollar will weaken significantly, or inflation will explode. None of these are good outcomes.”

His comments reflect increasing worry among economists that the U.S. government may eventually have to choose between aggressive monetary tightening or allowing inflation to spiral, both of which could be disastrous for traditional financial markets.

Bitcoin and Gold: Modern-Day Safe Havens

In light of the looming debt crisis, Dalio believes it’s time for investors to rethink where they store value. He recommends moving away from cash and bonds, which are vulnerable to inflation, and instead favoring assets like gold and Bitcoin.

“Hard money, things like Bitcoin and gold—make sense in this kind of environment,” Dalio explained. “They are scarce, decentralized, and not tied to any one government’s printing press.”

His endorsement of Bitcoin is particularly noteworthy, given his traditionally cautious stance on cryptocurrencies. While he doesn’t consider himself a “Bitcoin maximalist,” Dalio has become increasingly vocal about its role as a hedge against fiat currency devaluation.

Still Wary of Government Intervention

Despite his belief in Bitcoin’s long-term potential, Dalio also issued a word of caution: don’t assume Bitcoin is free from government scrutiny. He reminded investors that if Bitcoin becomes too successful, as a real alternative to traditional currencies, governments may react forcefully.

“Remember what happened with gold in the 1930s,” he said. “Governments have, in the past, made it illegal to own certain assets when they felt it threatened monetary control. Bitcoin could face similar challenges.”

He stressed that while Bitcoin might be a strong hedge in today’s environment, investors should not ignore the possibility of regulatory crackdowns, especially as adoption grows.

The Bottom Line: Proceed With Caution, But Stay Informed

As Bitcoin continues to recover and market sentiment improves, Dalio’s warning comes as a sobering reminder that macroeconomic realities still loom large. His message isn’t to panic—but to prepare. Diversification, understanding the risks, and thinking long-term remain essential strategies.

Whether Bitcoin keeps climbing or hits turbulence ahead, Dalio’s words suggest one thing is clear: the global financial system may be heading for a major shake-up—and smart investors should be paying close attention.

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