Good “buying opportunity” for Bitcoin – book author sees strong US dollar as a blessing

Good “buying opportunity” for Bitcoin – book author sees strong US dollar as a blessing

Robert Kiyosaki, the author of the bestseller “Rich Dad Poor Dad”, currently sees a good “buying opportunity” for Bitcoin (BTC), silver and gold given the strong US dollar and further interest rate increases.

As Kiyosaki explains on his Twitter profile on October 2, the prices of the three commodities mentioned – which are often also seen as a means of hedging – will probably initially continue to fall due to the sustained strength of the US dollar. However, as soon as the US Federal Reserve reverses its monetary policy and cuts key interest rates again, the author believes that the three investment products will go up again.

A day earlier, Kiyosaki had already predicted that this reversal could come as early as January 2023 if the US dollar had a “crash” like the British pound recently.

“Will the US dollar fare like the British pound? I guess so. I think the US dollar will crash by January 2023 after the US Federal Reserve does an about-face,” said the entrepreneur.

Since May 2020, Kiyosaki has explicitly advocated asset classes that are not under the direct influence of the US Federal Reserve. For example, he has since warned investors to “buy bitcoin and save” after the US central bank printed massive amounts of money in the context of the corona crisis.

Ironically, Kiyosaki’s passionate advocacy of bitcoin stands in stark contrast to his lack of intrinsic value in the market-leading cryptocurrency. Nevertheless, in his current tweet, the book author is as confident as ever and writes about his purchase recommendation:

“Once the US Federal Reserve does its about-face and cuts interest rates again, like Britain did last time, you’ll be laughing while everyone else will be crying.”

In a circular to his subscribers, the expert also emphasizes that it is all the more worthwhile to invest in cryptocurrencies now in order to be able to make disproportionate profits in the long term:

“It’s not enough just that you WANT to invest in crypto […]but you MUST get into crypto now before the biggest economic crisis in history hits.”

The US dollar has clearly strengthened compared to other major currencies in recent weeks and months. According to Trading Economics data, the GBP/USD, EUR/USD and JPY/USD currency pairs are down 18.24%, 15.54% and 23.33% respectively.

The continued interest rate hikes by the US Federal Reserve, combined with the strong USD, have caused the crypto market to plunge by 55% over the past 12 months.

However, hedge fund manager CK Cheng predicts that October could bring fresh volatility for BTC:

“October is always very volatile, especially in combination with high inflation and further discussions about a change in central bank monetary policy. The concern is that if the central bank does too much quantitative tightening, it could plunge the US economy into a severe recession.”

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