Ray Dalio Says the World Order Has Broken Down: What Does It Mean for Crypto?

Billionaire investor Ray Dalio asserts that the global order established post-WWII is collapsing, placing the world into "Stage 6" of his "Big Cycle," characterized by great disorder where "might is right" amid clashes between great powers. He notes that international relations lack enforcement, leading to escalating conflicts in trade, technology, capital, geopolitics, and potentially military action, drawing parallels to the 1930s leading up to WWII, with the US-China rivalry over Taiwan being a key flashpoint.

For cryptocurrency, this instability presents a dual outlook. In the short term, rising geopolitical stress and tighter financial conditions could trigger risk-off sentiment, causing volatility and price swings in crypto, similar to other high-beta assets. However, in the long term, sanctions and financial fragmentation might boost interest in decentralized assets like Bitcoin as alternatives to traditional banking infrastructure.

Despite Bitcoin's "digital gold" narrative, heightened tensions often push investors toward traditional safe havens like gold, which has recently surged to record highs while crypto struggled. Analyst sentiment suggests that while weakening trust in traditional money may drive long-term crypto interest, near-term price action remains vulnerable to global risk aversion favoring established assets.

(Source：BeInCrypto)