Sign up now for <\/strong>CryptoCodex<\/strong><\/a>\u2014A free crypto newsletter that will get you ahead of the market<\/strong><\/p>\n The bitcoin price remains far from its 2025 peak of $126,000 per bitcoin, however, even as U.S. secretary of war Pete Hegseth signals China is secretly stockpiling bitcoin<\/a>.<\/p>\n Now, as traders brace for an \u201cimminent\u201d White House bitcoin game-changer<\/a>, legendary billionaire Ray Dalio has warned the U.S. dollar is teetering on the brink of collapse\u2014just as JPMorgan analysts predict a huge rotation from gold to bitcoin.<\/p>\n Sign up now for the free <\/strong>CryptoCodex<\/strong><\/a>\u2014A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin price and crypto market swings<\/strong><\/p>\n ForbesBitcoin And Crypto Are Suddenly Braced For Two Major Price EarthquakesBy Billy Bambrough<\/a> The U.S. dollar is suffering from a sustained period of debasement, which some fear could spiral into a full-blown collapse\u2014boosting gold and the bitcoin price.<\/p>\n Getty<\/p>\n “The United States now spends $7 trillion. It takes in about $5 trillion, so it spends 40% more than it takes in,” Dalio, the founder of the world\u2019s biggest hedge fund Bridgewater Associates, told<\/a> the New York Times\u2019 Interesting Times podcast.<\/p>\n “It\u2019s been running those deficits for a while, so it has a debt that\u2019s about six times its income, the amount that it takes in. And you can see throughout history that that produces problems.”<\/p>\n 05\/11 update: Following reports that U.S. national debt now exceeds 100% of gross domestic product (GDP), Marc Goldwein, senior vice president at the Committee for a Responsible Federal Budget, has warned the U.S. is entering a debt spiral.<\/p>\n \u201cWhen that happens, at some point, you\u2019re in this debt spiral,\u201d Goldwein told<\/a> the New York Times. \u201cThe only way to stop it is through some kind of big shock to the system.\u201d<\/p>\n Meanwhile, the Congressional Budget Office (CBO) revealed<\/a> last week that the U.S. Treasury has paid $628 billion in net interest this year to service its borrowing.<\/p>\n \u201cOutlays for net interest on the public debt rose by $41 billion (or 7%) because the debt was larger than it was in the first seven months of fiscal year 2025 and because of higher long-term interest rates. Declines in short-term interest rates partially mitigated the overall rise in interest payments,” the CBO said.<\/p>\n The gold price has bounced in recent weeks after dropping toward $4,000 per ounce in April, with analysts pointing to inflation pressures and the debt spiral as fueling its rise.<\/p>\n \u201cElevated inflation, growing sovereign debt, and persistent global uncertainty continue to strengthen gold\u2019s appeal. The market did not need a new catalyst \u2014 the existing ones were always there,\u201d Max Baecker, president of American Hartford Gold (AHG), said in emailed comments.<\/p>\n U.S. debt has skyrocketed in recent years following huge government spending through the Covid-era and lockdowns, with interest rates that were rapidly hiked to rein in inflation adding to the cost of servicing the ballooning $39 trillion U.S. debt pile.<\/p>\n \u201cSo when we look at history, we see that in all such periods, all the fiat currencies go down. And gold goes up,\u201d Dalio said, pointing to gold currently being \u201cthe second largest reserve currency of central banks.\u201d<\/p>\n A future \u201cfinancial crisis will mean that the capacity to spend will be very limited,\u201d Dalio said when asked if the economy is headed for \u201ccrisis and collapse,\u201d adding he doesn\u2019t \u201cthink any of the fiat currencies will be effective store holds of wealth.\u201d<\/p>\n Dalio\u2019s warning comes at the same time as analysts with Wall Street giant JPMorgan see “the debasement trade [rotating] from gold to bitcoin.” <\/p>\n The gold price has doubled over the last two years, climbing alongside silver, as traders bet that continued inflation and Federal Reserve money printing will devalue and debase the U.S. dollar.<\/p>\n In a note seen<\/a> by The Block, JPMorgan analysts led by managing director Nikolaos Panigirtzoglou said they\u2019re seeing bitcoin, sometimes called \u201cdigital gold\u201d due to its capped supply and immutable nature, gaining over gold as the debasement trade after the Iran conflict, as bitcoin exchange-traded funds (ETFs) inflows outpace gold ETFs.<\/p>\n Sign up now for <\/strong>CryptoCodex<\/strong><\/a>\u2014A free crypto newsletter that will get you ahead of the market<\/strong><\/p>\n ForbesSudden Bitcoin Price Surge Fuels Huge $16 Trillion \u2018Supercycle\u2019 PredictionBy Billy Bambrough<\/a><\/p>\n The bitcoin price has bounced after plunging at the beginning of the U.S. war in Iran. <\/p>\n Forbes Digital Assets<\/p>\n In March, another billionaire investor, Stanley Druckenmiller, predicted the U.S. dollar won\u2019t be the world\u2019s reserve currency in 50 years\u2014possibly replaced by bitcoin or crypto<\/a>.<\/p>\n \u201cWe\u2019re doing everything we can to destroy it,” Druckenmiller said, likely referring to the spiraling U.S. budget deficit, which he has previously described as a \u201cdebt bomb.\u201d The dollar will “probably outlive me [but] I doubt it\u2019ll be the reserve currency in 50 years.\u201d<\/p>\n Druckenmiller, calling the dollar \u201cthe cleanest, [dirty] shirt,” said he didn\u2019t know what might replace the dollar as the world\u2019s reserve currency but said he could be \u201csome crypto thing [that] I hate,” echoing a prediction he first made in 2021.<\/p>\n Elsewhere, Tesla billionaire Elon Musk has also (repeatedly<\/a>) predicted the end of the U.S. dollar, sparking speculation he\u2019s gearing up for a bitcoin bombshell<\/a>.<\/p>\n Musk has warned that the world is headed for a post-fiat currency situation, declaring energy \u201cthe true currency\u201d and fueling speculation among bitcoin supporters that he\u2019s quietly backing the cryptocurrency.<\/p>\n Meanwhile, former Federal Reserve chair Janet Yellen has warned that U.S. president Donald Trump could be pushing the U.S. dollar toward \u201chyperinflation”<\/a>\u2014a situation some think could blow up the bitcoin price<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"05\/11 update below. This post was originally published on May 9 Bitcoin has rocketed 30% since the beginning…\n","protected":false},"author":3,"featured_media":784767,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[7566,90814,64,79,9401,1439,8940,67,132,68],"class_list":{"0":"post-789035","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bitcoin","9":"tag-bitcoin-price","10":"tag-business","11":"tag-economy","12":"tag-gold","13":"tag-u-s","14":"tag-u-s-dollar","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116556738314412829","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/789035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=789035"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/789035\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/784767"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=789035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=789035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=789035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"bitcoin,](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/05\/1778349863_333_0x0.jpg\")
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