Why Bitcoin (BTC) and the Crypto Market Are Down – Robert Kiyosaki Warns of a Historic Market Crash

Bitcoin and the crypto market are taking a hit lately, with BTC dipping below $77,000 in just the last day.

Bitcoin (BTC) and the crypto market are facing difficulties, with BTC falling below $77,000 in recent analysis. Investors are feeling the heat as rapid price movements, shaky finances, and a growing sense of unease are pushing people to sell.

Robert Kiyosaki, known for Rich Dad’s Prophecy, is comparing this to a potential disaster, likening it to the infamous 1929 stock market crash.

As market watchers identify a key factor, they’re noting a large sum of money flowing out of the crypto market, along with forced sell-offs and a general decrease in enthusiasm.

Over the past week, Bitcoin has slid 7.90%, decreasing from $83,550 to $76,905, according to Coinpedia’s latest analysis. At press time, the price of BTC stands at $80,214.10.

Analysts at Coinpedia are attributing this decline to a combination of economic uncertainty and heightened concerns over a potential U.S. recession, which were further fueled by recent comments from Donald Trump.

Additionally, a substantial amount of $1.3 billion in options contracts on Bitcoin are set to expire in the coming days at strikes between $70,000 and $75,000. Unless BTC manages to stay above these key support levels, analysts anticipate that these expiring options could exert additional downward pressure on the crypto's price.

According to Coinpedia’s data, liquidations over the last 24 hours have amounted to $315.56 million, a significant volume that underscores active leveraged trading activity.

In related news, capital outflows from Bitcoin ETFs (exchange-traded funds) have totaled $189 million, indicating a broader trend of declining investor confidence in cryptocurrencies.

Kiyosaki’s Market Crash Warning

Kiyosaki has once again stated his belief that a historical collapse of the financial markets is imminent. He highlighted that the United States, Japan, and Germany, the nations which drove world expansion, are now experiencing economic instability due to incompetent leadership.

“The Everything Bubble is bursting,” said Kiyosaki, adding that the coming crash could be worse than the 1929 stock market crash. Despite his bleak outlook, he advised investors to stay calm and buy undervalued assets.

He stated that he will be buying more Bitcoin, gold, silver, and real estate when prices go down.

Tokyo, posting on X (formerly Twitter) as @DefiTokyo, breaks down a broader collapse. Crypto and the S&P 500 lost $5.5 trillion in two months. The S&P 500 is down $4.5 trillion since February 20, with an average daily decline of $350 billion. The Nasdaq is now approaching a bear market, still 8% away from reaching it.

According to Tokyo, this signals a sudden and strong decrease in risk appetite, which is more significant than the ongoing trade war.

Institutions started reducing their holdings of mega-cap tech stocks early this year, and hedge funds began decreasing their exposure to the Magnificent 7 to a 22-month low by early 2024. In contrast, retail investors piled into cryptocurrencies to chase the rally.

At the beginning of February, the total short interest on Ethereum reached a historical high. However, even with good news like the U.S. forming a Bitcoin reserve and BlackRock’s entry into the metaverse fund, cryptocurrencies have lost over $1 trillion in market capitalization.

Despite a record outflow of $2.6 billion from crypto funds last week, and $3.5 billion from small-cap stock funds, and an additional $2.1 billion from mid-cap stock funds, sector funds saw an even larger outflow of $4.5 billion, with $1.9 billion alone coming from the tech sector.

According to analyst Tokyo, who prefers a broader view of the market, it’s not market fundamentals but rather sentiment that is driving the market. These large-scale price swings indicate rapid shifts in traders’ risk appetite.