The highly anticipated Federal Reserve pivot is expected to take place this week, with market analysts expressing optimism. The US Federal Open Market Committee (FOMC) is set to initiate its cycle of monetary easing on 18th September.
Renowned author of “Rich Dad Poor Dad,” Robert Kiyosaki, believes that the Fed’s pivot will have a positive impact on Bitcoin and gold. He expressed,
‘Bitcoin, gold, silver prices about to EXPLODE…When Fed PIVOTS and real assets go up in price, as fake money leaves fake assets such as US bonds, fleeing to real assets such as real estate, gold, silver, and Bitcoin.”
Could Inflation Drive Bitcoin’s Growth?
Kiyosaki also advised his followers to consider acquiring more Bitcoin before the Fed commences its easing cycle.
“Purchase some (more) gold, silver, or Bitcoin…before the Fed pivots and reduces interest rates.”
This upcoming rate cut will be the first in four years, and analysts have positioned risk assets for potential gains. Nonetheless, Kiyosaki previously mentioned that Bitcoin and other tangible assets would benefit even more due to the unsustainable levels of US debt.
On September 13th, Kiyosaki warned about the unmanageable US debt situation, regardless of the outcome of the US elections. He highlighted that the dollar’s value was diminishing and suggested that investing in Bitcoin and gold would be wiser than holding onto dollars.
“The dollar is depreciating. Cease hoarding dollars, which are considered counterfeit money…and shift to saving gold, silver, & Bitcoin…legitimate currency.”
In March, Mike Novogratz of Galaxy expressed a similar viewpoint. He believed that Bitcoin’s value would appreciate as US debts continued to escalate, adding $1 trillion every 100 days.
In essence, the erosion of the dollar’s value due to monetary inflation will drive individuals to explore substitutes such as gold, Bitcoin, or silver. The escalating inflation could potentially propel Bitcoin to $10 million per unit, as projected by the author in July.
Meanwhile, Bitcoin bounced back to $60K after a two-week struggle below this critical threshold.
Following last week’s release of US economic data, the markets were pricing in a 50/50 likelihood of a 25/50 bps (basis point) cut in the Federal Reserve’s interest rates. The short-term market reaction to the Federal Reserve’s pivot remains uncertain.