Investors buy both gold and Bitcoin as hedges against fiscal anxiety

Gold and Bitcoin are rallying in tandem as investors pile into what Wall Street has started calling the “debasement trade.” The logic is straightforward: when a government’s debt tab gets large enough, you park your money in things that can’t be inflated away. The numbers behind the panic US national debt crossed $40 trillion in August 2026. Annual interest payments on that debt are now approaching $1 trillion. Gold has responded by climbing more than 15% month-to-date, pushing above $4,700 per ounce and hitting three-month highs. Bitcoin has recorded weekly gains north of 20% and is trading above $77,000. Dalio’s playbook goes mainstream Ray Dalio, the Bridgewater Associates founder, has been especially vocal about repositioning. His current recommendation: allocate 10-15% of investment portfolios to gold, with a modest holding in Bitcoin to improve risk-adjusted returns. Research from Bitwise and JPMorgan has examined portfolios that combine gold and Bitcoin, finding that a 15% combined allocation to the two assets produced a Sharpe ratio nearly three times higher than the standard 60/40 portfolio over the period from 2018 to 2025. That outperformance was especially pronounced du...