Billionaire hedge fund manager Ray Dalio is changing his tune on Bitcoin again. The founder of Bridgewater Associates now recommends investors allocate up to 15% of their portfolio to Bitcoin or gold to hedge against inflation and surging US debt. That’s a big jump from his 2022 advice, which capped BTC exposure at 2%.
Why the change of heart? Dalio thinks the US is entering what he calls a “debt doom loop” with Treasury projections showing $12 trillion in new debt issuance over the next year.
The national debt has already ballooned to $36.7 trillion, and the government is now expecting to borrow $1 trillion in Q3 alone, a significant increase from earlier estimates. For long-term thinkers, Dalio sees Bitcoin and gold as life rafts in a sinking fiat system.
“If you’re optimizing for risk-adjusted returns, you’d want about 15% in gold or Bitcoin,” Dalio said in a recent podcast.
Bitcoin vs Gold: Dalio’s Inflation Shield
While Dalio is still gold biased, he acknowledges Bitcoin’s growing role as a store of value as confidence in traditional currencies erodes. But his endorsement comes with caveats.
Dalio flagged concerns about blockchain transparency, code-level flaws, and regulatory oversight, saying these limit BTC’s candidacy as a full-fledged reserve asset.
But his main point is clear: when governments print trillions, hard assets matter. And he’s not alone. US Senator Cynthia Lummis recently advocated for Bitcoin as a hedge for working-class Americans struggling with inflation.
Key takeaways from Dalio’s updated stance:
Institutional investors are buying more Bitcoin.
Privacy concerns due to blockchain transparency.
Code vulnerabilities could impact long-term trust in BTC.
Investors should choose their split between gold and Bitcoin based on risk tolerance.
Even Dalio owns BTC personally despite his cautious tone.
Bitcoin (BTC/USD) at $118K: Breakout Brewing?
BTC/USD is at $118,386, stuck in a symmetrical triangle on the 4hr chart. Volatility has dropped, and the apex is near. The 50 EMA at $118,075 is flat, showing bulls and bears are indecisive. Price has made higher lows since July 25 and lower highs, capping gains, typical of a consolidation before a breakout.
Momentum indicators agree with this coiling setup. RSI is at 53, not overbought or oversold. A slight bullish divergence is forming, as the price made a lower low on July 25, while the RSI made a higher low, indicating that bearish pressure may be losing steam.
Bitcoin Price Chart – Source: Tradingview
The candlestick pattern has printed a doji and a small spinning top, showing balance and setting up for a move. A breakout above $120,283 could take us to $122,845 or $125,111. Below $118,000, and we could see $116,513 or $114,532.
Trade Setup
If BTC closes above $120,300 with volume, it’s a breakout from the triangle. Traders can:
Enter long at $120,400
Set stop-loss at $118,000 (below recent support)
Target: $122,800 and $125,000 (key resistance zones)
This is a clean setup—just wait for confirmation. No breakout? Wait patiently. Triangles trap early movers.
Bitcoin Hyper Presale Over $6M as Price Rise Nears
Bitcoin Hyper ($HYPER), the first Bitcoin-native Layer 2 powered by the Solana Virtual Machine (SVM), has raised over $6 million in its public presale, with $6,098,717 out of a $7,004,929 target. The token is priced at $0.012475, with the next price tier expected to be announced soon.
Designed to merge Bitcoin’s security with Solana’s speed, Bitcoin Hyper enables fast, low-cost smart contracts, dApps, and meme coin creation, all with seamless BTC bridging. The project is audited by Consult and engineered for scalability, trust, and simplicity.
The golden cross of meme appeal and real utility has made Bitcoin Hyper a Layer 2 contender to watch in 2025. With staking, a streamlined presale, and a full rollout expected by Q1, $HYPER is gaining serious traction.
The post Bitcoin Price Prediction: Billionaire Investor Ray Dalio Backs Bitcoin as U.S. Prints Trillions – Best Inflation Hedge? appeared first on Cryptonews.
