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Ray Dalio Warns of World Order Breakdown: Is Crypto at Risk?

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Ray Dalio Warns of World Order Breakdown: Is Crypto at Risk?

Billionaire investor and Bridgewater Associates founder Ray Dalio says the global order established after World War II is breaking down. He argued that the world is entering what he calls “Stage 6” of the “Big Cycle.”

His warning has triggered renewed debate about geopolitical instability and its impact on cryptocurrency markets.

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Ray Dalio Says We’re in “Stage 6” as World Order Breaks Down

Dalio frames the current moment through what he calls the “Big Cycle.” This is a pattern in which dominant empires rise, peak, and eventually decline. According to this model, the world is now in “Stage 6.”

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“In my parlance, 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,” the post read.

Unlike domestic political systems, Dalio argues, international relations lack effective enforcement mechanisms such as binding laws or neutral arbitration. As a result, global affairs are ultimately governed by power rather than rules. When a dominant country weakens and a rival gains strength, tensions typically increase.

He identifies five types of conflict that tend to escalate in such periods: trade and economic wars, technology wars, capital wars involving sanctions and financial restrictions, geopolitical struggles over alliances and territory, and finally, military wars. 

Most major conflicts, he argues, begin with economic and financial pressure long before bullets are fired. Dalio draws comparisons to the 1930s, when a global debt crisis, protectionist policies, political extremism, and rising nationalism preceded World War II. 

He notes that before large-scale military conflict erupted, countries engaged in tariff battles, asset freezes, embargoes, and financial restrictions, tactics that resemble measures used today.

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In his view, the most significant flashpoint in the current cycle is the strategic rivalry between the United States and China, particularly over Taiwan.

“The choice that opposing countries face—either fighting or backing down—is very hard to make. Both are costly—fighting in terms of lives and money, and backing down in terms of the loss of status, since it shows weakness, which leads to reduced support. 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,” Dalio wrote.

However, warnings like this are not new. Dalio has issued similar cautions for years. This suggests his recent remarks are part of a consistent long-term thesis rather than a sudden shift.

Still, it’s worth noting that rather than making a direct prediction about military conflict, Dalio argues that the structural conditions historically associated with major power transitions are now in place.

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Broader Implications for the Crypto Market

Dalio’s warning raises questions about how digital assets might perform. In periods marked by sanctions, asset freezes, and restrictions on cross-border finance, cryptocurrencies can attract attention as alternative settlement rails that operate outside traditional banking infrastructure. 

Bitcoin, in particular, is often viewed as resistant to censorship and capital controls. These characteristics could become more relevant if financial fragmentation accelerates. At the same time, cryptocurrencies remain sensitive to global liquidity conditions. 

Historically, geopolitical stress and policy tightening have triggered broad risk-off reactions across markets. This, in turn, may weigh on equities and high-beta assets alike. 

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If rising tensions lead to tighter financial conditions or reduced investor appetite for risk, crypto markets could experience heightened volatility in the short term.

“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,” analyst Ted Pillows stated.

Another key factor is that heightened geopolitical tensions may push investors toward traditional safe-haven assets. Gold has historically benefited during periods of uncertainty, as capital seeks stability and long-standing stores of value. 

In recent months, precious metals have surged to record highs, while cryptocurrencies struggled to recover following October’s tariff-driven market downturn. This divergence highlights that, despite Bitcoin’s “digital gold” narrative, many investors still treat gold as the primary hedge during acute geopolitical stress.

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If tensions deepen, capital flows could continue favoring established defensive assets over more volatile alternatives. For crypto markets, that dynamic suggests a complex outlook: while long-term narratives around monetary debasement and financial fragmentation may strengthen, near-term price action could remain vulnerable to shifts in global risk sentiment.

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Can Pi Network price reclaim $0.20 after breaking a key resistance trendline?

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Pi Network price has confirmed a breakout from a descending trendline support on the daily chart.

Pi Network’s price shot up more than 50% to $0.20 earlier last week before parting with some of its gains and settling lower. Can it reclaim the key psychological figure now that it has confirmed a breakout from a multi-month trendline resistance?

Summary

  • Pi Network price briefly rallied to a four-week high of $0.20 last week.
  • Pi price action has confirmed a breakout from a multi-week descending trendline support on the daily chart.

According to data from crypto.news, Pi Network (PI) price rose nearly 54% to a four-week high of $0.20 on February 15 before profit taking stirred it back to $0.17 at the time of writing, though it still retains 20% gains over a seven-day period.

The PI network rally came amid investor hype surrounding the project’s upcoming key upgrades for the following months, aimed at building the ecosystem towards a more decentralized network. Notably, the upgrades for its mainnet node operators are part of its transition from version 19 to 22 of the Stellar network to accelerate its vision of decentralization while seeking to optimize performance, better security, and scalability to support long-term network growth for the project.

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Another catalyst fueling this uptick is the hype surrounding the first anniversary of its mainnet launch on Feb. 20.  Investors often tend to celebrate such milestones by buying more tokens, which can often drive speculative rallies.

Against this backdrop, derivatives data show that the Pi Network token’s funding rate has shifted from negative to positive at press time. This reversal suggests that traders are rotating from bearish to bullish positioning, which typically tends to uplift market sentiment surrounding the associated token.

Additionally, there is a lot of community chatter that the token could be listed on crypto exchange Kraken later this year. Getting listed on a major exchange like Kraken, which has a customer base of millions, could provide a significant boost to its price and overall liquidity.

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On the daily chart, Pi Network price has confirmed a breakout of a descending trendline that had been acting as dynamic resistance since late November last year. Breaking above this long-standing pattern indicates that bulls are reclaiming market dominance and appear positioned to drive prices higher in the short term.

Pi Network price has confirmed a breakout from a descending trendline support on the daily chart.
Pi Network price has confirmed a breakout from a descending trendline support on the daily chart — Feb. 16 | Source: crypto.news

Evidence of a burgeoning uptrend is visible across several oscillators, with the MACD lines turning upward to indicate a positive crossover in momentum. This is typically interpreted as a sign that the period of distribution is ending and accumulation has begun. 

Validating this transition, the Aroon Up at 92.86% vastly outpaces the 28.5% Down reading, confirming that the bulls have successfully seized control of the price discovery process.

Hence, Pi Network is well-positioned to see a potential rebound to its Feb. 15 high of $0.20. If bullish momentum persists, the rally could extend to its Nov. 28 high of $0.28, which lies 64% above the current price level.

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Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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Willy Woo Flags Q Day Risk as Bitcoin’s Valuation Versus Gold Slips

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Willy Woo Flags Q Day Risk as Bitcoin’s Valuation Versus Gold Slips

Onchain analyst and early Bitcoin adopter Willy Woo is warning that growing attention to quantum computing risks is starting to weigh on Bitcoin’s long-term valuation case against gold.

Woo argued in a Monday X post that markets had begun to price in the risk of a future “Q‑Day” breakthrough — shorthand for the moment when a powerful enough quantum computer exists to break today’s public key cryptography.

Roughly 4 million “lost” Bitcoin (BTC) — coins whose private keys are presumed gone — could be dragged back into play, Woo argued, if a powerful quantum computer could derive private keys from exposed public keys, undermining part of Bitcoin’s core scarcity narratives.

He estimated only about a 25% chance that the network would agree to freeze those coins via a hard fork, one of the most contentious issues in Bitcoin governance today.

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Q‑day risk and “lost” coins

According to blockchain researchers, the 4 million exposed coins represent around 25%-30% of the Bitcoin supply and are held in addresses whose public keys are already visible onchain, making them among the first at risk in a quantum attack scenario.

Related: Institutions may get ‘fed up’ and fire Bitcoin devs over quantum: VC

Yet any move to freeze these coins would upend long‑standing norms around fungibility, immutability and property rights.

Freezing the coins could provoke deep splits between those prioritizing backward‑compatible fixes (upgrades that preserve existing rules and coins without invalidating past transactions or requiring a contentious hard fork), and those willing to rewrite rules to protect early balances.

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With a 75% likelihood of the coins remaining untouched, investors should assume, Woo said, a non‑trivial probability that an amount of BTC equivalent to roughly “8 years of enterprise accumulation” becomes spendable again.

It’s a prospect that is already being priced in as a structural discount on BTC’s valuation versus gold for the next five to 15 years, Woo argued, meaning that Bitcoin’s long‑term tendency to gain purchasing power when measured in ounces of gold is no longer in play.

BTC vs Gold Chart Price and Ratio. Source: Bitbo

Bitcoin’s post‑quantum migration path

Many core developers and cryptographers stress that Bitcoin does not face an imminent “doomsday” situation and has time to adapt.

The emerging roadmap for a post‑quantum migration is not a single emergency hard fork, they argue, but a phased process, eventually steering the network toward new address formats and key management practices over a multi‑year transition. 

Even if quantum did arrive sooner than expected and the coins were recirculated, other Bitcoiners, such as Human Rights Foundation chief strategy officer Alex Gladstein, argue that it is unlikely they would be dumped onto the market. 

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Gladstein sees a more likely scenario where the coins are accumulated by a nation-state rather than immediately sold.

Related: Why Luke Gromen is fading Bitcoin while staying bullish on debasement

Quantum risk goes mainstream in macro

Still, Woo’s warning lands in a market where Bitcoin is trading almost 50% off its all-time high, and quantum has already moved from a niche concern to a mainstream risk factor in institutional portfolios.

In January, Jefferies’ longtime “Greed & Fear” strategist Christopher Wood cut Bitcoin from his flagship model portfolio and rotated the position into gold, explicitly citing the possibility that “cryptographically relevant” quantum machines could weaken Bitcoin’s store of value case for pension‑style investors. 

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Magazine: Kevin O’Leary says quantum attacking Bitcoin would be a waste of time