Robert Kiyosaki, the author renowned for his book “Rich Dad, Poor Dad,” has described the recent decline in Bitcoin [BTC] prices following the imposition of tariffs by Trump as a favorable “buying opportunity.”
President Donald Trump made an announcement regarding tariffs on imports from Canada, China, and Mexico, set to come into effect in February. Experts in the market have expressed concerns that trade disputes may fuel inflation and impact the prospects for rate cuts by the Federal Reserve – a scenario that could negatively affect assets with high risk like Bitcoin.
Nevertheless, Kiyosaki is of the opinion that the significant fiscal debt in the U.S poses a more substantial challenge, making assets like BTC, gold, and silver more appealing. In his words,
“As Trump initiates tariffs: Gold, silver, Bitcoin might face a downturn. This is positive. I will consider purchasing more when prices decline. The real issue lies in DEBT… which is only bound to worsen. Downturns signal attractive asset prices. It’s an opportunity to enhance wealth.”
Earlier in January, the author stood firm on his BTC price forecast of $175K-$350K by the end of 2025. Hence, the question arises – Is there a possibility for the cryptocurrency to attain such levels?
Is a Rebound Likely in February?
The closure of January witnessed Bitcoin registering a 9.29% increase on the market charts. Historically, February has been known to observe significant surges, particularly in post-halving periods. Since 2013, BTC has consistently finished February in the positive territory, boasting an average gain of 15%. If history repeats itself, Bitcoin could observe an uptrend in February.
Nonetheless, the risk of inflation triggered by tariffs cannot be disregarded at this point.
Another positive signal for Bitcoin’s performance is reflected in the U.S money supply (M2) data, as the liquidity in USD has commonly been associated with upswings in BTC prices. Market analyst Joe Burnett even anticipates the M2 figures to surpass the peak levels from 2021, potentially propelling the cryptocurrency to higher valuations.
“The M2 data is set to reach record highs for the first time since 2021. An abundance of liquidity chasing after 21,000,000 bitcoins. The outcome is predictable.”
Currently, the monthly liquidation heatmap highlights significant levels (bright yellow) at $96k, $107k, and below $110k.
As of now, the price movement indicates a position midway between the critical liquidity thresholds. Forecasting the future trajectory is challenging. The upcoming U.S jobs report scheduled for the 7th of February might provide valuable insights into Bitcoin’s potential direction.