Bridgewater's Dalio Warns Fed Balance Sheet Expansion Could Push Gold and Bitcoin Higher Before Market Crash

Ray Dalio warns the Federal Reserve's decision to halt quantitative tightening and maintain its $6.5 trillion balance sheet on December 1, 2025, marks a shift toward "stimulating into a bubble." The Bridgewater Associates founder argues this policy change, occurring amid elevated asset prices and inflation above 3%, could drive gold and Bitcoin to dramatic highs before an eventual collapse. Dalio identifies the combination of large fiscal deficits and central bank expansion as classic late-cycle debt dynamics.