Dalio Highlights Global Systemic Threats, But Bitcoin Stays Resilient.

Dalio Warns of Global Economic Breakdown While Bitcoin Emerges as a Safe Haven

Ray Dalio, founder of Bridgewater Associates, is voicing urgent concerns about a potential systemic collapse in the global economic and political structures, warning that we may be on the brink of a far deeper crisis than just an economic downturn. In an interview with CNBC on Sunday, Dalio stressed that the markets aren’t just dealing with short-term volatility but with a more profound and structural fragility.

Despite the escalating uncertainty in global markets, Bitcoin (BTC) has shown remarkable resilience. The cryptocurrency has recently broken a three-month losing streak, climbing towards the $85,000 mark and suggesting that it could be emerging as a viable alternative safe haven in times of crisis.

The growing turmoil is being fueled by the ongoing mixed messages from the White House regarding tariffs, particularly President Trump’s shifting stance on international trade. These signals, along with the looming tariff policies, continue to contribute to significant volatility in the markets, especially in the past two weeks.

Dalio’s main concern is the United States’ increasing debt and deficit, which he argues is becoming unsustainable. He insists that Congress must act to reduce the federal deficit to 3% of GDP to avoid devastating long-term economic consequences. Dalio warns that the imbalance between the U.S. government’s debt and investor demand could trigger major market disruptions.

In the bond market, rising U.S. Treasury yields reflect these concerns. The 10-year yield is approaching 4.5%, and the 30-year is nearing 5%, which is causing anxiety among investors and raising the likelihood of intervention from the Federal Reserve to stabilize markets.

Dalio also points to the instability surrounding tariffs as a key contributor to broader economic chaos. The U.S. dollar, as indicated by the DXY index, has dipped below 100 for the first time in years, suggesting potential capital flight from the U.S. Dalio calls for a comprehensive trade agreement with China and a currency adjustment to fortify the yuan, which he believes would help bring stability to the increasingly fragile global system.

Dalio compares the current economic risks to those of past turning points in financial history, including the U.S. departure from the gold standard in 1971 and the 2008 global financial crisis. Both events marked pivotal shifts in the global economy, and Dalio warns that we may be approaching another such transformative moment.