- Ray Dalio warns of a U.S. debt crisis, driving interest in alternative assets.
- Trump’s Crypto Strategic Reserve announcement fuels an altcoin surge, reducing Bitcoin dominance.
As the crypto market grapples with sharp declines, billionaire investor Ray Dalio has issued a stark warning about the U.S. economy.
The Bridgewater Associates founder cautions that the nation could face a full-blown debt crisis within the next three years if policymakers fail to intervene.
Comparing the situation to an impending “heart attack”, Dalio highlights soaring debt levels and a potential lack of demand for U.S. Treasuries as critical risks.
What is Ray Dalio concerned about?
His concerns emerge as the global crypto market cap plunges to $2.76 trillion, marking a 7.99% drop in a single day, with Bitcoin [BTC] and Ethereum [ETH] suffering losses of over 8% and 11%, respectively.
Speaking on the Odd Lots podcast, Dalio suggested that in times of economic turmoil, investors may increasingly turn to alternative stores of value—fueling speculation on the role of digital assets in uncertain financial landscapes.
“What’s the alternative money that is stable in supply? Bitcoin might be a part of that, could be a big part of that, but what is the alternative money? Because debt is money and money is debt,”
His remarks followed Trump’s announcement of the U.S. “Crypto Strategic Reserve,” which includes Ripple [XRP], Solana [SOL], and Cardano [ADA], which sparked a significant surge in these assets as investors swiftly adjusted their portfolios.
While Bitcoin experienced an initial rally, its dominance (BTC.D) tumbled from 55.4% to below 50%, suggesting a notable shift of capital toward altcoins.
Historically, such declines in BTC dominance have often preceded bullish cycles for altcoins, fueling speculation that a broader altcoin surge may be on the horizon.
Ray Dalio expresses his confidence in Bitcoin
Ray Dalio refrained from making direct predictions but highlighted Bitcoin’s potential as a hedge against economic uncertainty due to its decentralized nature.
Unlike real estate, which governments can tax or confiscate, Bitcoin operates beyond traditional financial controls, offering a safeguard for wealth preservation.
While he acknowledged gold’s historical role as a financial hedge, Dalio pointed out that past crises have shown traditional assets struggling to retain purchasing power.
Source: Ray Dalio/X
What’s more?
The increasing dependence on debt-backed currencies raises significant concerns about the long-term stability of global financial systems.
As confidence in traditional reserves wavers, investors may look beyond Bitcoin and gold, turning to digital assets and decentralized finance as alternative stores of value.
The direction of monetary policy and debt management will play a crucial role in determining whether these decentralized assets gain mainstream acceptance or remain niche instruments.
