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Key Takeaways:
- Moving from a 1–2% to 15% allocation in BTC and gold reflects rising institutional trust in Bitcoin.
- A $37 trillion debt and $12 trillion in projected Treasury issuance highlight the appeal of decentralized assets.
- Institutions and investors continue to accumulate Bitcoin near $117K, suggesting long-term bullish sentiment.
Bitcoin’s price recently pulled back to around $117,000, but institutional demand has not wavered. Billionaire Ray Dalio, founder of Bridgewater Associates, has signaled stronger support for Bitcoin, advising investors to allocate 15% of their portfolio to BTC and gold. This is a notable shift from his earlier stance of 1–2% exposure in 2022.
Dalio’s recommendation comes at a time when the U.S. national debt has breached $37 trillion. Concerns over fiscal sustainability are driving institutions and high-net-worth individuals toward hard assets, including Bitcoin.
Debt Spiral Drives Dalio’s Bitcoin Pivot
On the July 27 episode of the Master Investor Podcast, Dalio cited the U.S. government’s ballooning debt load and looming $12 trillion Treasury issuance over the next year. According to Dalio, this fiscal imbalance could fuel inflation and devalue the U.S. dollar further — trends that tend to benefit assets like BTC.
“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 explained, adding that the precise ratio should vary based on investor preference.
BTC Price Dip Encourages Accumulation
Despite a temporary dip, Bitcoin remains up 27% year-to-date in 2025. The $110K–$117K price range has seen active buying, with both new entrants and long-term holders accumulating during market corrections. Analysts see this as a “staircase pattern” in cost basis distribution — signaling growing conviction and strategic accumulation.
The $110K–$117K range is gradually filling in. $BTC is being accumulated on both sides – buyers stepping in on dips, while earlier buyers are now acquiring at higher levels, forming a staircase-like pattern in cost basis distribution. pic.twitter.com/a2Ssri8WbD
— glassnode (@glassnode) July 28, 2025
Japan-based institutional player Metaplanet is among those continuing to add Bitcoin to its reserves this week, underlining persistent institutional interest regardless of short-term price action.
Also Read: PowerBank’s 3.79 MW Geddes Solar Project Goes Live, Powering New Bitcoin Treasury Strategy
Gold Still Dominates for Dalio, But Bitcoin Gains Traction
Though Dalio still favors gold, he now places Bitcoin in the same category of “hard assets.” However, he expressed reservations about BTC becoming a reserve currency, citing the transparency of blockchain and potential surveillance concerns: “Governments can see who is doing what transactions on it,” he noted.
Still, Dalio’s updated stance aligns with other prominent voices, including Rich Dad Poor Dad author Robert Kiyosaki, who has also encouraged investors to hold Bitcoin amid mounting U.S. debt risks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
