Ray Dalio Warns of Global Economic Breakdown as Bitcoin Approaches $85,000

Ray Dalio expressed concerns about a potential systemic breakdown of the global economic and political order in a recent CNBC interview. His focus is on:

Potential recession and market volatility
Mounting U.S. debt and deficit, urging Congress to reduce the federal deficit to 3% of GDP
Rising U.S. Treasury yields, with the 10-year yield under 4.5% and the 30-year below 5%
Tariff uncertainty impacting macro stability, contributing to market volatility
Decline of the U.S. dollar below 100 for the first time in years, indicating capital flight
Need for a comprehensive trade deal with China and currency adjustment to stabilize the economy

Despite the turmoil, bitcoin has shown resilience, breaking a three-month downtrend and approaching $85,000, suggesting its potential as an alternative safe haven.

Dalio compares current risks to those seen during the U.S. exit from the gold standard in 1971 and the global financial crisis in 2008.