Should Beijing look at its crypto ban? A former bank member believes so
A former member of the Monetary Policy Committee at the People’s Bank of China believes the ban on China should be reconsidered.
Robert Kiyosaki, author of Rich Dad Poor Dad believes that the price of Bitcoin will tend towards $50,000 USD in the next year given the “wall of institutional money” ahead.
The financial expert, who has become bullish towards Bitcoin in the past year, noted that buying Bitcoin before it sends above $20,000 USD is ideal before it hits his predicted value of $50,000 USD.
Glad I bought Bitcoin. Next stop $50 k. Wall of institutional money coming 2021. Buy below $20 k. If you missed Bitcoin, buy silver. Silver set to move due to AOC’s Green New Deal. America in trouble. Future bright for gold silver Bitcoin and entrepreneurs.
— therealkiyosaki (@theRealKiyosaki) December 13, 2020
With the difficulty that the US dollar is having to regain stability and the positive sentiment surrounding Bitcoin currently, the cryptocurrency market looks like it is poised to surge. As an asset which has become a safe-haven against the fiat currencies and its low correlation with the stock market, Bitcoin is in an unusual place to see a major spike when equities rise.
Two leading factors point towards the absent correlation between Bitcoin and U.S. stocks:
- When stocks rise, the general investor appetite increases, which helps Bitcoin price as the demand tends to increase, and
- Institutional investment has moved to Bitcoin to hedge against inflation, which has come at a time when there are relaxed financial conditions – given the unprecedented central bank liquidity injection as a result of the global pandemic.
As Kiyosaki noted, the increased interest in institutional investment has sent the cryptocurrency market into a bullish rally. As institutions like Grayscale, Square, and CME are buying more and more cryptocurrency, the demand for Bitcoin has surged; spiking the price and driving fresh investors to the market. With new investors flooding in, the price is driven, which results in those buying out of FOMO for possible profit.
If Kiyosaki’s predictions play in, the price of Bitcoin is headed towards a healthy surge to gain over 250% within the next year.