Ray Dalio Backs Gold and Bitcoin as US Debt Crisis Looms; BTC Eyes $126K

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 policy changes course. The Bridgewater Associates founder said on Friday that portfolios could benefit from a 10% to 15% allocation to gold, while overweighting both gold and Bitcoin relative to debt assets. Dalio cited mounting political and geopolitical tensions as key risks, noting that his stance represents a gradual shift from his historically cautious view on BTC. In 2022, he had described a 1% to 2% Bitcoin allocation as "reasonable," even as he raised concerns about privacy and quantum computing.

Standard Chartered is now considering raising its year-end Bitcoin forecast, with global head of digital asset research Geoff Kendrick warning that his $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 largely to short liquidations and recovering inflows into spot Bitcoin exchange-traded funds, noting that low open interest could attract more investors as prices climb. The bank had previously cut its targets in February, forecasting a drop to $50,000 before recovery.

Meanwhile, MANTRA's native token sank 18.5% from its 24-hour high to a record low shortly before the MANTRA Chain blockchain stopped producing blocks. The team announced a precautionary halt to investigate an unexplained incident, sending shockwaves through holders of the token. The event underscores the operational risks still present in newer blockchain networks as the crypto market continues its broader recovery. Investors are now watching for post-mortem details from the MANTRA team to assess whether user funds remain secure and when normal block production will resume.