Bitcoin News Today: Kiyosaki Warns Crypto Market Faces 1929-Style Collapse as Bitcoin Dips Below $119,000 Citing Inflation Debt Risks

Robert Kiyosaki, renowned financial educator and author of Rich Dad Poor Dad, has warned that the cryptocurrency market faces a potential collapse comparable to the 1929 Great Depression, emphasizing the need for investors to prioritize safe-haven assets. His remarks follow Bitcoin’s recent decline below $119,000, a development he attributes to broader economic vulnerabilities, including inflationary pressures and unsustainable national debt levels. Kiyosaki, a long-time advocate of Bitcoin, has shifted his focus to gold, silver, and Bitcoin as critical hedges against financial instability [1].

The cryptocurrency’s inability to maintain the $119,000 threshold has intensified concerns about market fragility. Kiyosaki notes that such volatility reflects systemic risks, including excessive monetary stimulus and the U.S. government’s historically high debt-to-GDP ratio, which he argues limits policymakers’ ability to respond to crises without exacerbating existing issues. He draws parallels between current conditions and the pre-1929 era, citing similar patterns of overleveraged markets and speculative excess [1].

Kiyosaki’s investment strategy centers on assets with intrinsic value and historical resilience during downturns. He highlights gold and silver as traditional safe havens, while positioning Bitcoin as a modern counterpart to these physical commodities. His approach aligns with strategies of investors like Warren Buffett and Jim Rogers, who have reportedly reduced exposure to equities and bonds in favor of cash and precious metals. By contrast, Kiyosaki stresses that Bitcoin’s decentralized nature and limited supply make it uniquely suited to counteract currency devaluation and inflation [1].

The warning underscores a growing debate about the role of cryptocurrencies in economic downturns. While Bitcoin’s price fluctuations remain a point of contention, Kiyosaki argues that its adoption as a store of value is accelerating amid declining trust in fiat currencies. He also cautions against overreliance on retirement portfolios heavily weighted in stocks, advocating for a diversified approach that includes cash, gold, silver, and Bitcoin to mitigate systemic risks [1].

Kiyosaki’s analysis has resonated with investors seeking defensive strategies amid global economic uncertainty. His emphasis on Bitcoin’s potential to outperform during market corrections reflects broader discussions about cryptocurrencies’ role as inflation hedges. However, critics note that Bitcoin’s historical volatility complicates its reliability as a safe asset, particularly during rapid downturns. The debate highlights the need for a nuanced understanding of macroeconomic trends and their interplay with digital assets [1].

As the crypto market navigates these challenges, Kiyosaki’s guidance underscores the importance of proactive portfolio management. His recommendations align with a defensive posture that prioritizes liquidity and tangible assets, reflecting a cautious outlook for the broader financial system. Investors are urged to stay informed about evolving market conditions and adapt strategies to align with macroeconomic realities [1].

Source: [1] [Robert Kiyosaki Suggests Bitcoin Could Gain Value Amid Potential Market Downturn] [https://en.coinotag.com/robert-kiyosaki-suggests-bitcoin-could-gain-value-amid-potential-market-downturn/].