Financial expert and author of the best-selling book ‘Rich Dad Poor Dad,’ Robert Kiyosaki has made a bold prediction on the potential increases in Bitcoin, gold, and silver should Donald Trump return to the White House.
These are some of the assertions made by Kiyosaki based on his opinion that Trump’s economic policies will greatly affect the economy and favor these asset classes.
According to Kiyosaki, Trump’s plan to depreciate the US dollar will be a tactical approach to strengthening domestic exports and revitalizing American businesses. In the view of Kiyosaki, a weaker dollar will enhance exports of the US goods hence provide employment in the economy and fostering economic development.
This economic activity would, in turn, increase the prices of gold, silver, and Bitcoin, as these assets are considered as safe-havens against currency depreciation and inflation.
Energy Policy and Inflation Concerns
Besides currencies, Kiyosaki identifies Trump’s plans to boost the domestic oil production as another factor that influences his economic prediction. The “drill, drill, drill” policy of the Trump administration focuses on increasing the supply of oil to decrease its price, which according to Kiyosaki will assist fight inflation.
He then contrasts this with President Biden’s decision to cancel the Keystone XL pipeline, which he alleges caused oil prices to rise from $30 to $130 per barrel, causing inflation which hurt the poor and middle class.
Concurrently, Kiyosaki is unhappy with Biden’s energy policies and accuses the latter of raising oil prices and dependence on oil stocks. He laments that Biden has had to turn to America’s strategic Petroleum reserve as a policy failure, blaming the high costs of energy.
Bitcoin and the Trump Trade
Kiyosaki’s predictions for Bitcoin are particularly notable. Based on the economic environment and market sentiment during the possibility of Trump becoming the president, he predicts that Bitcoin will hit $105k by August 2025.
Market analysts support this view arguing that Bitcoin will be boosted by the “Trump trade” in the run up to the November elections. Consequently, the market anticipates a Trump win which is may benefit energy, banking, and cryptocurrency industries.
As per the analysts, the recent political events such as Trump’s assassination attempt, Biden quitting the presidential race, and endorsing Kamala Harris have boosted Trump’s chances of winning. They posit that this enhances the chances of having a government favourable to crypto, thus boosting the chances of Bitcoin.
Broader Implications for the Crypto Market
Another factor that could lead to the adoption of a positive position by a future Trump administration is the presidential candidate’s apparent interest. According to reports, Trump in the further development of the cryptocurrency industry through the relaxation of the regulatory framework.
Furthermore, the selection of JD Vance, who is a Bitcoin investor, as Trump’s VP candidate has raised questions about the possible adoption of Bitcoin in the US financial system.
There is also debate on the current US gov’t Bitcoin stash, and Bryan Courchesne, an asset manager proposed that the Department of Justice’s large sum might transfer to the Treasury.
This could place Bitcoin into the strategic reserve category of assets meaning in line with Trump’s economic ideas.
Moreover, this could increase the acceptance of the Bitcoin as a global reserve currency. However, the US gov’t has recently sold off some of its Bitcoins, disposing of 58 BTC which is equivalent to $4 million.
Bitcoin Market Reactions and Investor Sentiment
Some recent events that have influenced Bitcoin’s movements include the large holdings by the now-defunct exchange Mt. Gox. With BTC’s price oscillating at $66K, the movement of large sums to exchanges like Bitstamp has sparked discussions regarding sell-off pressures, which in turn have impacted market mood.
Nevertheless, the long-term perspective is still positive for Bitcoin investors who expect changes in policies due to the upcoming elections. Businessman Mark Cuban and others have pointed out that inflation and conflicts can lead to mass adoption of Bitcoin as a hedge, cementing its status as a safe-haven asset even more.
Moreover, Elon Musk has also warned about the potential for the US dollar to crash and even noted that US may be on the brink of bankruptcy. Consequently, this provides more reasoning for the use of Bitcoin as a form of protection against such issues.
