Dalio Sounds Alarm on U.S. Treasuries: Debt Crisis Could Erupt Within a Year, Urges Cutting Bonds and Buying Gold, Bitcoin

Ray Dalio has warned that pressure in the U.S. Treasury market could develop into a debt crisis within a year, according to a report by finance.biggo.com. The warning centers on U.S. government borrowing and the outlook for Treasury securities, which are widely used as benchmark assets across global financial markets.

The report said Dalio urged reducing exposure to bonds while favoring gold and bitcoin. Gold has long been used by some investors as a store-of-value asset during periods of economic uncertainty, while bitcoin is a decentralized digital asset with a more limited history and substantially different market behavior.

U.S. Treasuries are debt securities issued by the federal government and are central to financing government operations. Concerns about debt sustainability, borrowing needs and bond-market demand can affect yields, broader financial conditions and investor sentiment. Dalio’s comments underscore continued debate over how rising public debt may influence markets and portfolio positioning.