Why Kiyosaki Suggests Investing in Bitcoin Amid Trump’s Tariff Battles

Understanding Kiyosaki's Bitcoin Advocacy amidst Trump's Trade Conflict

Why Kiyosaki Suggests Investing in Bitcoin Amid Trump's Tariff Battles

Key Points

Bitcoin’s Value Drop: A Buying Opportunity?

Robert Kiyosaki, the well-known author of “Rich Dad, Poor Dad,” sees the recent decline in the value of Bitcoin (BTC) as a buying opportunity. This drop follows President Donald Trump’s announcement of tariffs on imported goods from Canada, China, and Mexico, set to take effect in February.

The market has shown concern over these tariff wars, fearing they could trigger inflation and negatively impact the Federal Reserve’s rate cuts. This could potentially be bearish for risk assets like Bitcoin.

Debt: A Greater Threat

However, Kiyosaki believes the U.S. fiscal debt situation poses a larger problem. He argues that this ongoing issue will continue to make assets like Bitcoin, gold, and silver more appealing. Despite the potential for a crash due to tariffs, Kiyosaki asserts that such downturns present opportunities to purchase assets at a discount.

As of January, Kiyosaki has maintained his prediction that Bitcoin could reach a price between $175K-$350K by the end of 2025.

Looking at recent trends, Bitcoin ended January with a 9.29% gain. Historically, February has also proven to be a strong month for Bitcoin, particularly in post-halving years. Since 2013, Bitcoin has not closed February in the red, averaging gains of 15%.

However, the potential for inflation due to tariffs cannot be entirely dismissed.

Another positive sign for Bitcoin is the U.S. money supply (M2), as USD liquidity is often linked with Bitcoin rallies. Market analyst Joe Burnett suggests that this indicator could exceed its 2021 highs, potentially driving Bitcoin even higher.

Currently, Bitcoin’s price action is roughly halfway from its key liquidity levels. The direction it may take is uncertain. The upcoming U.S. jobs report, scheduled for 7 February, could provide some insight into Bitcoin’s future trajectory.

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