Robert Kiyosaki, has issued a warning about an impending global market crash and potential economic depression while encouraging investors to buy more Bitcoin.
Robert Kiyosaki, the millionaire investor and author of Rich Dad Poor Dad, has warned of a global market crash and a major economic depression ahead. Kiyosaki has advised his followers on the X platform to stack up real assets such as Silver, Gold, and Bitcoin BTC $114 371 24h volatility: 0.0% Market cap: $2.28 T Vol. 24h: $57.46 B , instead of having paper money.
As per Robert Kiyosaki, the global economy seems to be in a very fragile situation and might enter the “depression” phase soon. Despite Bitcoin being a volatile asset class, Kiyosaki has been bullish about it. He also predicts a strong downturn in global economies like Europe, China, and the USA, while urging individuals to be cautious with their finances.
Kiyosaki pointed out that one of the biggest obstacles to financial success is the lack of proper education on money management, stating, “What did school teach you about money?” He advised people to hold onto their jobs and savings, emphasizing that gold, silver, and Bitcoin are reliable assets that maintain their value regardless of economic shifts. In his message on the X platform, Kiyosaki wrote:
“Global crash has started. Europe, China. USA going down . Depression ahead? Please be smarter with your money. Hang on to your job and your money. Regardless of which way economy goes, gold, silver, and Bitcoin hold their value. For many people crashes are the best times to get rich.”
Sings of Financial Crisis: Is Bitcoin a Safe Haven?
The global volume of complex financial products has surged to $380 billion year-to-date, marking the highest level since 2007, just before the onset of the Financial Crisis. This figure has officially surpassed the 2021 high of approximately $370 billion, signaling a significant increase in market activity. The surge in volume is being driven by rising risk appetite, with markets rallying to record highs, reported The Kobeissi Letter.
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Courtesy: The Kobeissi Letter
For a long time, Bitcoin (BTC) has shared a strong correlation with the S&P 500. Thus, amid the sharp fall in the index last week after the Fed’s caution on reducing future rate cuts, the Bitcoin price has also retraced more than 10% from its all-time high of $108K.
Historically, Bitcoin prices have mirrored the global money supply with a lag of about 10 weeks. In October, as the global money supply hit a record high of $108.5 trillion, Bitcoin prices reached an all-time high of $108,000.
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Source: Joe Consorti
However, in the past two months, the global money supply has decreased by $4.1 trillion, now sitting at $104.4 trillion, the lowest level since August. If the historical correlation continues, this could signal a potential drop in Bitcoin price by up to $20,000 in the coming weeks.
It will be interesting to see whether Bitcoin succumbs to the global market volatility or whether Kiyosaki’s prediction that BTC will be a safe haven asset holds true.
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