Ray Dalio's Warning on Global Order Breakdown Fuels Bitcoin Bull Case

Bridgewater Associates founder Ray Dalio has declared that the post-World War II global order has collapsed, with nations entering what he characterizes as a power-driven "law of the jungle" phase rather than one governed by established rules ^[1].

In his recent analysis, Dalio described major powers as trapped in an ongoing "prisoner's dilemma," where they face pressure to escalate tensions across trade, technology, capital, and military domains or risk appearing vulnerable ^[1]. He warned this external instability compounds domestic economic pressures, typically prompting governments to raise taxes and significantly expand money supplies rather than declare outright defaults.

Crypto proponents view this environment as particularly favorable for assets like Bitcoin that operate independently of state control. Global broad money expanded from $26 trillion in 2000 to approximately $142 trillion in 2025, according to Econovis data cited in the analysis ^[1].

Former fund manager Asymmetry noted that significant Bitcoin rallies have historically aligned with expansions in M2 money supply, suggesting another surge may be forming ^[1]. Bitwise CEO Hunter Horsley emphasized the potential importance of "global, permissionless, apolitical monetary assets" in the current climate.

While Dalio's assessment doesn't directly forecast Bitcoin's trajectory, crypto market participants are leveraging his macro framework to argue that demand for neutral money could strengthen as geopolitical fragmentation intensifies ^[1].