The “Rich Dad, Poor Dad” author Robert Kiyosaki has startled the crypto world with a bitcoin crash forecast as the market harbours bullish sentiments. The acclaimed writer has warned that Bitcoin can crash to the $5,000 level even though it is currently trading at record-high levels. This could happen due to the economic turmoil. However, Bitcoin is trading at $65,657 which showcases how volatile the cryptocurrency market is.
Kiyosaki has drawn a parallel from the 2008 global economic crisis to highlight that the current economic conditions can lead everything to crash. The unsustainable “Everything Bubble” which gained momentum due to the huge influx of newly printed money in 2008 can soon burst, says Kiyosaki.
The author’s predictions are further vindicated by the $19.8 billion record-breaking Bitcoin open interest this week which indicates increased activity in a volatile market. This surge in open interest coincides with Bitcoin's recent price movements, which have seen the cryptocurrency reach all-time highs followed by significant corrections.
Kiyosaki’s Bitcoin crash forecast is drawn from his belief that markets like the crypto market get inflated because of the central banks pumping in money through excessive money printing. This could potentially lead to a global depression, more severe than the 2008 one.
However, some analysts like Samara Asset Group have pointed towards institutional adoption as a stabilizing factor for Bitcoin which led them to announce plans for a $32.8 million bond issuance to increase their Bitcoin holdings. This shows how institutional investors are still interested in cryptocurrencies like Bitcoin which is a testimonial to the ongoing bullish sentiments in the market.
Kiyosaki is also optimistic about Bitcoin’s future in the long term despite his bearish forecast. He forecasts a potential rebound to $100,000 or even $250,000 after the market stabilizes, viewing the anticipated crash as an opportunity for prepared investors.
The author’s forecast is in line with the bullish sentiments in the Bitcoin market as ETFs gather more than 200,000 Bitcoin worth $13.3 billion after spot Bitcoin ETFs were approved in the US.
The contrast between the soaring Bitcoin price and Kiyosaki's prediction points to the age-old perception regarding the digital asset’s role in the global financial system. While some crypto traders warn of its volatile nature and susceptibility to market crashes, others consider it as a hedge against economic uncertainty and inflation