Key Points
- Robert Kiyosaki warns of an impending global market crash and economic depression.
- Kiyosaki advises investing in real assets like Silver, Gold, and Bitcoin, rather than keeping paper money.
Robert Kiyosaki, a millionaire investor and author of the book ‘Rich Dad Poor Dad’, has issued a warning about a potential global market crash and a significant economic depression. He has urged his followers to invest in tangible assets such as Silver, Gold, and Bitcoin (BTC), instead of holding onto paper money.
According to Kiyosaki, the global economy is in a precarious position and could soon enter a “depression” phase. Despite the volatility of Bitcoin, Kiyosaki remains bullish on the cryptocurrency. He also forecasts a major downturn in global economies, including Europe, China, and the USA, and encourages individuals to be prudent with their finances.
Importance of Financial Education
Kiyosaki emphasized the role of proper financial education in achieving financial success. He pointed out the lack of financial education in schools and urged people to hold onto their jobs and savings. He stressed that gold, silver, and Bitcoin are reliable assets that maintain their value regardless of economic fluctuations.
The global volume of complex financial products has risen to $380 billion year-to-date, reaching its highest level since 2007, just before the Financial Crisis. This figure has surpassed the 2021 high of roughly $370 billion, indicating a substantial increase in market activity. The surge in volume is attributed to growing risk appetite, with markets reaching record highs.
Bitcoin’s Correlation with the S&P 500
For a long time, Bitcoin (BTC) has shown a strong correlation with the S&P 500. Therefore, following the significant drop in the index last week due to the Fed’s warning about future rate cuts, Bitcoin’s price also fell by more than 10% from its all-time high of $108K.
Historically, Bitcoin prices have followed the global money supply with a delay of about ten weeks. In October, when the global money supply reached a record high of $108.5 trillion, Bitcoin prices hit an all-time high of $108,000.
However, in the past two months, the global money supply has decreased by $4.1 trillion, currently sitting at $104.4 trillion, the lowest level since August. If the historical correlation continues, this could indicate a potential drop in Bitcoin’s price by up to $20,000 in the coming weeks.
It remains to be seen whether Bitcoin will be affected by global market volatility or if Kiyosaki’s prediction that Bitcoin will serve as a safe haven asset proves to be true.
