Despite Bitcoin’s recent significant price decline driven by a global liquidity crunch and institutional investor caution, financial author Robert Kiyosaki maintains his long-term conviction, viewing the dip as a future buying opportunity.
The influential author of “Rich Dad Poor Dad” attributed the cryptocurrency’s slump below $100,000 to a global “cash crisis,” warning his followers on social media that “bubbles of everything are bursting.” He reiterated his commitment to Bitcoin, stating he is not selling and will wait to acquire more.
Bitcoin recently touched a local low of approximately $94,200, marking its worst weekly performance since March and pushing its market capitalization below $2 trillion. The digital asset has corrected 24% from its October 6 high of $126,000, trading at $95,665 at the time of the original report.
A significant factor in the downturn has been reduced institutional demand, particularly affecting U.S. spot Bitcoin exchange-traded funds (ETFs). These funds registered over $1 billion in negative flows last week, including $492 million in outflows on one recent Friday and $870 million the preceding Thursday.
Charlie Shery, finance director at Australian platform BTC Markets, noted that while individual whale selling is often not critical, the current market lacks significant buyer support to absorb these sales. He added that the absence of consistent buyers, like ETFs and MicroStrategy earlier in the cycle, appears to be driving Bitcoin’s sustained price reduction.
Kiyosaki, known for his skeptical view of traditional finance, described the world as “deeply in debt” and suggested a period of “Great Printing” of money is imminent. He believes this will ultimately increase the value of “hard assets” like gold, silver, Bitcoin, and Ethereum as fiat currencies falter.
TWO MORE THINGS:
1: I willl buy more Bitcoin when crash is over.
There are only 21 million Bitcoins.
2: If you have a Cashflow Game form a Cashflow Club and bring Birds of Feather together…. Teach and learn together.— Robert Kiyosaki (@theRealKiyosaki) November 4, 2023
The broader market sentiment reflects this trepidation, with the Crypto Fear & Greed Index plummeting to 16 points, indicating “Extreme Fear.” Historically, such levels have been perceived by some analysts as potential buying opportunities.
However, analytics firm Santiment cautions that widespread claims of a market “bottom” often precede further price drops. True bottoms, they suggest, typically form when traders anticipate even lower prices. JPMorgan analysts had previously identified $94,000 as a key support level for Bitcoin, which the cryptocurrency recently tested.