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.

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,

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.