Robert Kiyosaki Buys More Bitcoin After Crash, Warns of US Debt

Robert Kiyosaki, the popular author of Rich Dad, Poor Dad, has been accumulating Bitcoin as it remains in a correction. He has also been accumulating gold and silver, a sign that he expects these assets to rebound.

Robert Kiyosaki is Buying Bitcoin

Bitcoin and other cryptocurrencies initially dropped after the midterm elections as investors remained concerned about the impact of Democrats’ wins in the House of Representatives and the Senate. BTC initially dropped to $75,655, its lowest level since September 16.

The view among investors is that Democrats will derail Trump’s crypto agenda, including the CLARITY Act, whose odds of passing have continued to fall in the past few months.

Also, there is a likelihood that they will pass bills to increase regulations in the crypto industry. While Trump has the power to veto bills, they will have room to include some of their crypto provisions to mandatory bills.

Bitcoin’s retreat was short-lived as the coin resumed the uptrend, reaching its highest point since Monday.

In a statement during the decline, Robert Kiyosaki noted that he bought the dip, pointing to several major factors. He believes that Bitcoin, silver, and gold will do well over time because of the growing public debt in the United States.

Indeed, the debt is soaring, and analysts expect that a deadlocked government will make it the situation worse. Government borrowing jumped to $40 trillion in September and the US Debt Clock data shows that it has already crossed the $40.5 trillion mark.

Bitcoin has always been seen as digital gold because of its supply cap of 21 million, which will never be changed. Also, unlike fiat currencies, Bitcoin cannot be manipulated by any central authority like a central bank.

Kiyosaki has also argued that Bitcoin can be a good hedge against inflation as the money supply rises. Indeed, data shows that the global M2 money supply has been on an upward trend in the past few years.

Top Investors Have Been Buying Bitcoin

Kiyosaki is not the only investor who has been buying Bitcoin. Michael Saylor has maintained his bullish view of Bitcoin, with Strategy boosting its Bitcoin holdings. It now holds 849,327 coins. Strive, the company that Vivek Ramaswamy started, has also been buying BTC and now holds 43,124 coins. Coinbase has also increased its holdings to 18,000.

Meanwhile, Ray Dalio, the billionaire founder of Bridgewater Associates, has also been buying Bitcoin. In a statement, he said that Bitcoin will become necessary as countries face major debt problems in the future.

Still, the main challenge is that American investors seem to be selling their coins, possibly as fears of a Democratic win rise. SoSoValue data shows that spot Bitcoin ETFs had over $514 million in outflows this month after losing $515 million in October. The outflows could be because of positioning ahead of the US midterm elections.

Technicals Point to Bitcoin Price Weakness

A major risk is that technicals suggest that Bitcoin may be at risk of further downside. On the daily chart, the coin has slumped below the 50-day Exponential Moving Average (EMA). It has also slumped below the Supertrend indicator, which is a risky move.

The coin seems to be forming a bearish flag pattern, which is made up of a vertical line and a horizontal channel. This pattern usually leads to a bearish breakout over time. It has also dropped below the 23.6% Fibonacci Retracement level.

Therefore, the coin may continue falling, potentially to the 50% retracement level of $72,602.