Institutional interest in Bitcoin (BTC) grows as billionaire Ray Dalio expresses support for the cryptocurrency

Institutional interest in Bitcoin (BTC) grows as billionaire Ray Dalio expresses support for the cryptocurrency

In a significant shift from his earlier stance, renowned investor Ray Dalio has recommended allocating approximately 15% of a portfolio to Bitcoin or gold as a hedge against escalating US national debt and the resulting dollar devaluation and fiscal risks. This recommendation, which reflects a significant increase from his earlier 1-2% Bitcoin allocation in 2022, is aimed at optimizing the return-to-risk ratio amid concerns about the US government's projected massive Treasury issuance to cover debt obligations.

Dalio's new stance comes as the US national debt surpasses $37 trillion, with the Treasury expected to borrow over $1.5 trillion in the latter half of 2025 alone. Dalio warns of the "devaluation of money" driven by the government potentially issuing $12 trillion in new debt over the next year to manage mounting obligations.

While Dalio personally holds some Bitcoin, he prefers gold to Bitcoin, citing concerns over Bitcoin’s transparency and code surveillance issues. However, he leaves the exact allocation split between Bitcoin and gold up to individual investors.

Meanwhile, in the crypto market, Bitcoin is currently flirting at $118K levels. Despite a recent pullback to $117K, institutional accumulation continues, with players like Metaplanet making BTC purchases this week. Market analysts maintain a cautiously optimistic stand for Bitcoin and crypto, given the concerns of Trump tariffs are behind us.

The pattern of Bitcoin accumulation in the $110K-$117K price range suggests a staircase-like progression in cost basis distribution, with buyers stepping in on dips and earlier buyers acquiring at higher levels.

Robert Kiyosaki, another veteran investor, has stressed the importance of having hard assets like gold, silver, and Bitcoin in a portfolio amid rising US debt concerns. However, Kiyosaki expresses some skepticism about BTC's potential as a reserve currency due to surveillance risks and the inherent transparency of blockchain transactions.

The US Treasury has revised its borrowing forecast upward, indicating a likely increase in capital inflows for Bitcoin and crypto. As the fiscal situation in the US becomes increasingly uncertain, investors like Dalio and Kiyosaki are urging caution and a focus on store-of-value assets like gold and Bitcoin to buffer portfolios against currency devaluation and fiscal instability risks.

1. Given Dalio's recent recommendation of allocating 15% of a portfolio to Bitcoin or gold as a hedge against US national debt and dollar devaluation, it seems the finance sector is increasingly considering investing in technology-based assets like cryptocurrency.
2. As the US Treasury revises its borrowing forecast upward and the US government's fiscal situation becomes more uncertain, some investors like Dalio and Kiyosaki suggest diversifying portfolios by investing in technology-driven assets like Bitcoin and gold to shield against currency devaluation and fiscal instability risks.

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