Bitcoin vs Gold Forecast: XAU/BTC Crashes to 3-Month Low as Ray Dalio Urges Investors to Buy BTC

Bitcoin (BTC) price has gained by 23% in five trading days since August 17. During the same period, the price of gold has moved from $4,300 to $4,600. BTC’s massive gains compared to gold have seen the XAU/BTC ratio drop to its lowest price since May.

Billionaire Ray Dalio is now urging investors to buy some Bitcoin alongside gold, saying that it could be the best way to hedge against the rising US debt.

Ray Dalio Surges Investors to Buy Some BTC

Ray Dalio noted that national debts are soaring, and this is creating the need for investors to diversify their portfolios with assets like Bitcoin and gold. He noted that BTC and gold have the potential to perform well because they are not produced by the government.

Dalio’s remarks come days after the US debt reached $40 trillion for the first time in history. US Treasury Secretary Scott Bessent has tried to tame this rising debt through Treasury buybacks as recently reported by CoinGape.

The billionaire had also recently urged investors to abandon Bitcoin for gold, saying that it has the potential to perform better considering the current risks around a potential drop in AI stocks.

XAU/BTC Ratio Drops to Lowest Level Since May

The XAU/BTC reading has dropped from 0.070 on August 17 to 0.057 at the time of writing. This drop represents a 23% drawdown in just five days, suggesting that Bitcoin is performing better than gold.