Dalio Backs Gold and Bitcoin as US Debt Crisis Looms; BTC Targets New High

Billionaire investor Ray Dalio is urging investors to favor gold and "a bit" of Bitcoin over bonds, warning that the United States could face a debt crisis within the next three years unless policymakers change course. Speaking on Friday, the Bridgewater Associates founder recommended allocating 10% to 15% of portfolios to gold to reduce risk, while overweighting gold and Bitcoin relative to debt assets. Dalio cited mounting political and geopolitical tensions as key risks, noting his longstanding caution on Bitcoin remains but that the cryptocurrency is gaining credibility as a portfolio hedge. In 2022, he previously described a 1% to 2% Bitcoin allocation as "reasonable," reflecting a gradual shift in his stance.

Standard Chartered is now considering raising its year-end Bitcoin forecast, with global head of digital asset research Geoff Kendrick suggesting the $100,000 target may be "too low." In a Friday note, Kendrick said Bitcoin could move toward its all-time high of $126,000 before year-end, with the recovery potentially accelerating after October 6. He attributed the latest rally partly to short liquidations and noted that inflows into spot Bitcoin exchange-traded funds have begun to recover. Standard Chartered had previously cut its targets in February, lowering its BTC year-end estimate from $150,000 to $100,000 and its Ether target from $7,500 to $4,000.

Meanwhile, MANTRA's native token sank 18.5% from its 24-hour high to a record low after the MANTRA Chain blockchain halted block production due to an unexplained incident. The team announced a precautionary halt as it investigated the issue, sending shockwaves through the token's holder base. The crash adds MANTRA to a growing list of blockchain projects that have faced operational disruptions, underscoring the risks investors take on when holding tokens tied to single-chain ecosystems with limited redundancy.