Dalio’s Warning on World Order Sparks Fresh Bullish Outlook for Crypto Market

Billionaire investor Ray Dalio has issued a stark warning about the global order, arguing that the world is entering a period of greater disorder. While his remarks have sparked discussions about geopolitical tensions and financial uncertainty, experts see fresh momentum building in the crypto market. They believe such periods of instability could trigger renewed interest in digital currencies, potentially sparking a market rally.

Dalio’s Big Cycle Theory Sparks Crypto Market Rally

In his latest article, Ray Dalio argued that the global system maintained after World War II has begun to fall apart. He calls the current phase of rising disorder and conflict “Stage 6” of “Big Cycle.”

The rising geopolitical tensions and uncertainty further strengthen his points. Dalio cites the battle between the US and China as an example.

“The choice that opposing countries face—either fighting or backing down—is very hard to make. Both are costly…When two competing entities each have the power to destroy the other, both must have extremely high trust that they won’t be unacceptably harmed or killed by the other. Managing the prisoner’s dilemma well, however, is extremely rare.”

Considering past cycles, periods of geopolitical pressure have often pushed investors to search for more stable assets, putting cryptocurrencies under pressure. Growing geopolitical tensions have significantly impacted crypto prices. For instance, as CoinGape reported, Trump’s threat toward Iran had pushed Bitcoin prices down.

However, investors’ fading confidence in fiat currencies could be a strong positive catalyst for the crypto market. Analysts like Ted stated via his X post,

“When Ray Dalio speaks, you listen. He warns that the post-World War II global order is breaking down… For stocks, this likely means higher volatility, lower valuations, and sharper swings as geopolitical risks rise. For crypto, weakening trust in traditional money could drive long-term interest, but short-term stress may still trigger severe price swings.”

Unveiling Big Cycle ‘Stage 6’

“We are in the Stage 6 part of the Big Cycle in which there is great disorder arising from being in a period in which there are no rules, might is right, and there is a clash of great powers,” stated Dalio. He posits that the prevailing clashes between countries, the absence of strict regulations, and sudden shifts in policy are creating a more uncertain and unstable global environment.

According to Ray Dalio, power is distributed among countries unfairly, with international relations often shaped by some major nations. He believes that this situation could bring about deadly wars when a leading nation begins to weaken, and another grows. Dalio also noted that the war will not begin directly, but will be followed by economic pressure and financial instability. He referred to World War II as an example, suggesting that the current situation could lead to another catastrophe.