Key Highlights
- Kiyosaki warns a historic crash is near and urges buying Bitcoin, Ethereum, gold, and silver, while others panic.
- Crypto market shows extreme fear: Bitcoin down 13.98% in February, total market cap at $2.35T amid volatility.
- Bloomberg’s McGlone warns crypto losses may signal broader market stress; Bitcoin could fall toward $10K if stocks weaken.
Investors should prepare for a historic market upheaval, warns Robert Kiyosaki, author of Rich Dad Poor Dad. Posting on X, Kiyosaki highlighted a warning first made in his 2013 book Rich Dad’s Prophecy, predicting the biggest stock market crash in history.
He urged followers to especially buy digital assets while panic grips the market, emphasizing, “This coming crash may make you richer beyond your wildest dreams if you realize crashes are the best of times to get richer.”
Kiyosaki said he has put his money into real gold, silver, Ethereum, and Bitcoin, steering clear of any fake or risky assets. “I am so bullish on Bitcoin I am buying more and more as Bitcoin’s price goes down,” he wrote.
To support his argument, he pointed to Bitcoin’s limited 21 million supply, stating that almost all of these 21 million coins are already in circulation. Kiyosaki shared that fear and panic in the market can be turned into chances to buy valuable assets at lower prices.
Crypto market snapshot
The cryptocurrency market reflects Kiyosaki’s warning, as it is currently very volatile. As per CoinMarketCap data, Bitcoin was trading at $68,187, down 0.30% in the last 24 hours. February has already seen a decline of 13.98%, which could be the start of a five-month losing streak if the month ends in the red. This would be the longest losing streak since June 2018 for the top cryptocurrency.
Ethereum was trading at $1,973, up 0.80%, while other altcoins such as XRP were up 1.33%, BNB was up 1.78%, and Solana was up 1.23%. However, the total cryptocurrency market cap was down 0.16% at $2.35 trillion, with a 24-hour trading volume of $83.53 billion, down by almost 18%. The market sentiment is extreme, as the Fear & Greed Index is at 13, indicating extreme caution. Additionally, the Altcoin Season Index is at 31, indicating a Bitcoin-dominant market.
Broader economic concerns
Bloomberg Intelligence macro strategist Mike McGlone in an X post warned that crypto losses could indicate broader financial stress. He said bitcoin may revert toward $10,000 and foreshadow a potential U.S. recession. McGlone added, “The buy the dips mantra since 2008 may be over,” highlighting a shift in long-standing investor behaviors.
He cited several macro indicators of risk. U.S. stock market capitalization relative to GDP has reached its highest level in roughly a century. Simultaneously, 180-day volatility in the S&P 500 and Nasdaq 100 is at an eight-year low. McGlone described the “crypto bubble” as “imploding” and noted that gold and silver are “grabbing alpha” at levels unseen in about 50 years. He also linked the peak of “Trump euphoria” to contagion across markets.
McGlone’s scaling chart compares bitcoin divided by 10 to the S&P 500, showing both below 7,000 as of Feb. 13. He highlighted 5,600 on the S&P 500, roughly $56,000 for bitcoin, as an initial “normal reversion.” Beyond this, bitcoin could drop further if U.S. equities weaken.
Also Read: Institutions are Capping Bitcoin at 3%, Kevin O’Leary Explains Why
