Warning of Dollar 'Collapse': Bridgewater's Dalio Says $39 Trillion Debt Could Trigger Crisis, Wall Street Bets on Shift from Gold to Bitcoin

On May 9, Bitcoin bulls received another macro narrative. Ray Dalio, founder of Bridgewater Associates, warned that the $39 trillion debt crisis in the U.S. could lead to a long-term devaluation or even ‘collapse’ of the dollar, while JPMorgan analysts noted a market shift from gold to Bitcoin in what they termed a ‘currency devaluation trade.’ Dalio stated that the current annual expenditure in the U.S. is about $7 trillion, with revenues around $5 trillion, indicating that long-term fiscal deficits and debt expansion are nearing historically dangerous levels. He believes that during similar periods, fiat currencies tend to continuously devalue, while gold benefits. Meanwhile, JPMorgan analyst Nikolaos Panigirtzoglou pointed out that as the conflict with Iran escalates, inflows into Bitcoin ETFs have consistently surpassed those into gold ETFs, with some investors viewing Bitcoin as ‘digital gold’ and a hedge against dollar devaluation. The report mentioned that since the outbreak of the U.S.-Iran conflict, Bitcoin’s price has risen by approximately 30%, although it remains below its historical high of $126,000 in 2025. Notable investors, including Stanley Druckenmiller and Elon Musk, have recently expressed concerns about the long-term status of the dollar as a reserve currency.