7The author of “Rich Dad Poor Dad” Robert Kiyosaki believes that the price of Bitcoin will tend to be $50,000 USD over the next year given the impending “wall of institutional money”.
The financial expert, who was bullish on Bitcoin for the past year, suggested that the ideal is to buy Bitcoin before it moves more than $20,000 USD and then hit its expected value of $50,000 USD.
Given the difficulty of the US dollar needing to regain its stability and the current positive sentiment around Bitcoin, the cryptocurrency market appears to be preparing for a surge. As an asset, it has become a safe haven against fiat currencies, and its correlation with the stock market is low. When stocks go up, Bitcoin is in an unusual place and will go up sharply.
Factors that points towards the absent correlation between BTC and US stock according to Robert Kiyosaki
The two main factors that contribute to the lack of correlation between Bitcoin and US stocks are:
- When the stock goes up, the average investor’s appetite goes up. Which tends to increase the demand for the price of Bitcoin and
- Institutional investments have turned to Bitcoin to hedge against inflation. It did so at a time when financial conditions were loose in the face of the global pandemic. The central banks have injected them with unprecedented liquidity.
As Kiyosaki pointed out, increased interest in institutional investment has led the cryptocurrency market to a bullish recovery. As institutions like Grayscale, Square and CME buy more and more cryptocurrencies, the demand for Bitcoin has increased. Rising prices and new investors for the market. With the influx of new investors, prices are driven, causing those to buy FOMO for a reasonable profit.
If Kiyosaki’s forecast works, the price of Bitcoin will move in the direction of healthy growth over the next year, with an increase of over 250%.