TLDR
- Ray Dalio says rising U.S. debt weakens the dollar’s global reserve role.
- Bitcoin and crypto gain as alternatives to fiat currencies.
- Gold hits $3,600/oz, rising 33% since January 2025.
- Dalio warns Treasuries’ purchasing power is in decline.
The global financial landscape is shifting as investors search for safer assets. Billionaire Ray Dalio has warned that rising U.S. debt burdens and the weakening reserve status of the U.S. Dollar are driving interest in alternative stores of value. He explained that this trend is supporting the rise of Bitcoin and cryptocurrencies, alongside the strong rally in gold, which recently touched a new all-time high.
Dalio Warns on U.S. Dollar’s Reserve Role
During an interview with the Financial Times, Ray Dalio raised concerns about the long-term stability of the U.S. Dollar. He said that growing debt levels and reduced confidence in U.S. Treasuries are pressing issues. According to Ray Dalio, these conditions are weakening the global role of the dollar as the world’s dominant reserve currency.
Dalio explained that these pressures are encouraging investors to explore alternatives. “If dollar supply rises and demand falls, crypto becomes an attractive alternative,” he stated. He emphasized that Bitcoin and other digital assets are becoming more appealing because of their limited supply and role as a potential store of wealth.
Gold and Cryptocurrencies as Alternatives
Gold has been climbing strongly in recent months, reaching $3,600 per ounce for the first time in history. Since January, gold prices have increased by 33%, far outpacing the S&P 500 during the same period. Analysts say that the demand for gold is rising as investors look for security amid unstable market conditions.
Dalio linked the rally in gold with the broader trend of moving away from the U.S. Dollar. He noted that cryptocurrencies are also part of this transition, as more companies and investors use them for treasury reserves. The growth of digital assets is seen as a response to concerns over inflation, debt, and falling trust in fiat currencies.
Concerns Over Treasuries and Stablecoins
Dalio also addressed the debate on stablecoins, which are often pegged to the U.S. Dollar and backed by Treasuries. He argued that stablecoins can remain safe if regulations are effective and transparent. However, he warned that the declining purchasing power of U.S. Treasuries is a real concern for investors who rely on them for stability.
With bond yields climbing, including the 30-year U.S. yield above 5 percent, questions remain about the long-term demand for Treasuries. Dalio’s comments suggest that investors are shifting toward assets that can better hold value under inflationary pressure. Both gold and cryptocurrencies are positioned as alternatives for those concerned about the dollar’s weakening role.
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