Debt servicing costs are projected to reach $879 billion this year, a figure comparable to the national defense budget.

Amid this economic uncertainty, the global cryptocurrency market has faced volatility, with Bitcoin and Ethereum experiencing significant losses of over 8% and 11%, respectively.

The U.S. national debt has soared to $33.6 trillion, with a staggering deficit of $1.7 trillion in 2023, representing 5.8% of the total GDP.

Dalio highlights a troubling trend where borrowing is increasingly used to service existing debt, leading to a 'debt debt spiral' that could exacerbate economic instability.

Billionaire investor Ray Dalio has issued a stark warning about an impending U.S. debt crisis, likening the situation to a 'heart attack' due to soaring debt levels and diminishing demand for U.S. Treasuries.

Despite the downturn, Dalio suggests that investors may increasingly turn to alternative assets like Bitcoin as a stable store of value, particularly as concerns grow over the stability of government-backed currencies.

He emphasizes Bitcoin's decentralized nature and fixed supply as key advantages over traditional assets, which are subject to government control and taxation.

While not explicitly endorsing Bitcoin as a 'savior', Dalio acknowledges its potential role as a decentralized asset that can preserve wealth during economic crises.

Dalio regards Bitcoin and digital assets as viable hedges against inflation, attributing this to their stable supply and decentralized characteristics.

Dalio's positive remarks on Bitcoin coincide with recent announcements from former President Trump about a proposed U.S. strategic reserve for cryptocurrencies, which has led to a surge in crypto prices.

Following Trump's announcement, Bitcoin's price surged to over $90,000, although its market dominance decreased from 55.4% to 50%, indicating a shift toward altcoins.

Historically, declines in Bitcoin dominance have often preceded bullish trends for altcoins, suggesting a potential shift in investor interest towards these alternative cryptocurrencies.