Robert Kiyosaki, who rose to fame with his book Rich Dad Poor Dad, is also a celebrity in the crypto industry after his constant support. More importantly, he is known for his fondness of Bitcoin compared to any other assets. He has specially called Fiat Fake Money and multiple times has spoken about how Bitcoin is the future. With his beliefs, Robert posted his findings and predictions about the market and Bitcoin on X. One of his recent predictions was about the biggest Bitcoin crash, which might or might not be happening right. Let us discuss that in this blog.
Robert Kiyosaki Predicted The Biggest Crash of Bitcoin
At the beginning of July, Robert Kiyosaki posted a prediction of the biggest market crash in Bitcoin, Bonds, Gold, Silver, and many other asset prices. As per his prediction, the financial market will witness the biggest downtrend in the upcoming days. However, he also highlighted that it is worth it, and the one who has the patience will appreciate it.
BOOM GOiNG BUST:
Technical charts indicate biggest crash in history coming. Prices of real estate, stocks, bonds, gold, silver, & Bitcoin crash.
GREAT NEWS: Good time to buy bargains will follow.
Technical charts indicate major long term bull market cycle will…
— Robert Kiyosaki (@theRealKiyosaki) July 3, 2024
Though the post has mixed signals, the market crash just hours after Robert Kiyosaki’s prediction raises suspicion, as what if this is the crash he has referred to?
Robert himself has not confirmed or talked about the current crash, but it is one of the serious downtrends the crypto market witnessed where all the factors favored the downtrend, including the crash in the Bitcoin price.
Why Did the Crypto Market Crash?
The crypto market crash was because of the Bitcoin price crash, which happened under a series of events that occurred at the same time. There were multiple reasons behind this crash, but these three were the main factors leading it.
1.Mt Gox. Bitcoin Transfer
Mt Gox was the richest Bitcoin exchange back in the day, but the 2014 hack led to the loss of 850,000 BTC ($460 million), causing the exchange’s bankruptcy. At that time, the BTC price was merely $600, but now that has surged past $57K at present, but there were even better days.
The Mt Gox exchange has finally started to compensate the BTC holders of that time by returning their $9 Billion worth of Bitcoin, which led to liquidity issues in the market. As the Bitcoin price has surged around $9200% since then, the fear of instant selling by those receivers created a state of panic among the investors, causing a high selling pressure in the market.
2.Bitcoin ETF Outflows
Bitcoin ETFs became one of the most popular things in the financial market and received instant success from investors, where the initial days’ inflows were nonstop. However, with time, things slowed, impacting the Bitcoin price and the market crash right after Robert Kiyosaki’s predictions.
The entire June has witnessed $1.7 Billion in outflows despite the popularity. On many days, the major ETF providers had the outflows and inflows balanced, becoming zero on the scale. This was another prominent reason for Bitcoin’s fall.
3.German Government Transferring Bitcoin To Exchanges
Meanwhile, the market was also sensitive, the German government also deposited its seized cryptocurrencies on various exchanges. As per reports, the government has transferred more than 6300 BTC to different exchanges like Kraken and others in the last few days and has much more stored.
However, analysts believe that the exchanges will probably return these Bitcoins once they cannot succeed in selling at the right price as the market is down. The crypto exchange Bitstamp has already returned 1,692 bitcoins on Tuesday, and others might also follow.
There was also a selling pressure from the long position liquidation after the sellers acted early in fear of future losses. Additionally, the stability in the US Federal Bank Interest Rates at 5.5% has led to a shift in the financial market.
Is This The Bitcoin Crash Robert Kiyosaki Referred To?
Robert Kiyosaki predicted a crash that impacted all the financial markets, including Bitcoin, Gold, and many others. Though the crypto industry had quite a setback, the rest of the market had almost no impact during this time. However, things might change in the future as the crypto market crash is a sudden event, and the same can happen to others.
But the instant recovery in the crypto market is disconnecting the current crash with Robert’s prediction. Just the next day after the crash, the entire market had a slight lift, and in the next few days, it progressed. At its worst moment, the global market cap had declined to $1.97 Trillion, but now that is at $2.11 Trillion, and the Bitcoin price decline to $ 53.9K has long gone as the price has recovered to $57.6K.
Robert Kiyosaki is quite vocal about his theories and predictions, and his silence on the current situation indicates no relation between these events. More importantly, his prediction was based on technical factors and historical trends, but the recent crash was the result of external factors, confirming the same. Lastly, many of his predictions never came true, and this biggest crash might or might not be one of them.
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