Woofun AI reports that Bridgewater Associates founder Ray Dalio has pivoted to advocating for Bitcoin and gold allocations as a direct hedge against an imminent US debt crisis. This strategic recommendation marks a significant departure from his earlier skepticism, positioning these assets as critical buffers against systemic financial risks.

In a Friday LinkedIn post, Dalio specified that maintaining 10% to 15% of a portfolio in gold could mitigate exposure to internal political and external geopolitical conflicts. He projected that a US debt crisis will emerge in three years, give or take two, if current trajectories remain unaltered.

Woofun AI data shows Dalio now recommends overweighting these assets relative to traditional debt instruments like bonds, citing the escalating nature of global instability.

Despite his current endorsement, Dalio, with an estimated net worth of more than $15 billion, previously argued that Bitcoin could not replace gold as a store of value, citing privacy concerns and threats from quantum computing. His stance evolved from July 2025, when he disclosed holding some, "but not much" Bitcoin, yet recommended up to 15% in the cryptocurrency and gold. This contrasts sharply with his 2022 position, where he deemed holding 1% to 2% of BTC reasonable just before a severe crypto market downturn.

This evolution underscores a broader recalibration of asset allocation strategies in anticipation of sovereign debt instability. Dalio's current framework prioritizes non-sovereign stores of value over traditional fixed-income securities. This marks a definitive shift toward defensive positioning in the face of looming fiscal challenges.