Bitcoin is a hedge against $40T U.S. debt, Dalio says

Billionaire investor Ray Dalio has renewed his support for holding gold and some Bitcoin as U.S. federal debt has crossed $40 trillion, and BTC has rallied toward $80,000. Summary U.S. federal debt reached $40.05 trillion on Aug. 18, according to Treasury data. Dalio advised investors to favor gold and some Bitcoin over debt assets such as bonds. Bitcoin has climbed from nearly $63,000 to the upper $70,000 range this week. Treasury will double some long-dated debt buybacks to at least $4 billion per operation. Ray Dalio, writing in an X post, said the U.S. government’s financial position had reached an inflection point as its debt burden approached a level that may become difficult to manage without severe economic pain. The Bridgewater Associates founder advised investors to spread their exposure across asset classes and countries with strong finances. He also recommended limiting exposure to debt assets such as bonds while holding more gold and a smaller allocation to Bitcoin. “As general advice, I suggest diversifying well in asset classes and countries that have strong income statements and balance sheets and are not having great internal political and external geopolitical con...