Robert Kiyosaki, an investor, entrepreneur, and author of the popular book “Rich Dad Poor Dad,” has declared that a giant market crash is imminent. However, he maintains a bullish stance on alternative assets, asserting that investing in Bitcoin is the solution.
Kiyosaki attributed the imminent collapse to the reckless monetary policies of the US central bank, governments, and financial institutions. The author observed that the government’s actions only worsened the issue by issuing additional “fake money.”
This, in turn, contributes to inflation, diminishes the purchasing power of fiat currencies, and increases the wealth disparity between the wealthy and the poor.
In addition to Bitcoin, Kiyosaki recommended that investors concentrate on accumulating gold and silver to alleviate the consequences of the forthcoming collapse.
These assets have historically maintained their value and have even appreciated during periods of economic turmoil. Therefore, he emphasized his unwavering confidence in the value of Bitcoin and precious metals. He stated, “Save gold, silver, and Bitcoin.”
What are the odds of a giant market crash?
Following two consecutive blockbuster years with a remarkable 26% return in 2023 and 23% in 2024, will 2025 be the year the rally ends? Is there a possibility that the market could collapse, or will the good times continue?
Brain Belski, chief financial strategist at BMO Capital Markets, answered this question by saying, “Bull markets can, will, and should slow their pace from time to time.”
According to BMO Capital, the third year of a bull market typically provides returns lower than the first two years. It also underperforms the SP 500’s historical average return. Belski expects a year-end objective of 6,700 for the SP 500. This means there would be a 9.8% gain in 2025.
Notably, on 11 occasions since 1926, the SP 500 has achieved returns of 20% or more in two consecutive years. The third year’s outcomes were mixed on those occasions. With gains as high as 19.75%, the market was positive 60% of the time. Nevertheless, it was negative 40% of the time, with a particularly extreme -35% decline in 1937.
SP 500 returns in the third year after two consecutive positive years. Source: Forbes In addition, just as they did a year ago, virtually every institution cautions investors against anticipating another year of equity returns exceeding 20%. However, few individuals are prepared to declare the end of the stock surge that AI is driving.
Also, AI’s influence on the world will surpass that of other technologies that drove earlier periods of tidal change. Although no one else quite matches that level of optimism, many individuals anticipate that the benefits will become more extensive as the technology becomes more widely adopted.
In the case of inflation, it is seen as broadly contained. However, it is anticipated that it will not decrease to the target level as a result of Trump’s implementation of trade barriers and his stance on immigration.
Apollo Global Management predicted that the Federal Reserve would require additional time to achieve its inflation objective. It is one of many organizations that anticipate that interest rates will be reduced much more gradually than they are currently assessed by the market.
Kiyosaki predicts Bitcoin will reach $350,000 by 2025
In December 2024, Robert Kiyosaki stunned his audience by announcing that he anticipates Bitcoin to surpass $350,000 by 2025. Since that time, he has reiterated the same prediction on two separate occasions.
The financial analyst slightly revised his prediction in a tweet this week. Kiyosaki stated that he anticipates Bitcoin to reach a minimum of $175,000 and may subsequently extend the advance to the aforementioned $350,000 price level.
The author of “Rich Dad Poor Dad” is counting on the newly elected US president. Trump promised to welcome Bitcoin and other cryptocurrencies and to establish a strategic Bitcoin reserve, buying BTC over the next four years.
Meanwhile, several market professionals also remain optimistic about the coin’s long-term future. A recent Bitcoin price research suggests that the BTC might reach $108K once it crosses the $100K mark. Notably, the BTC price increased by more than 2% today to $98,261, but trading volume declined 15% to $35.28 billion.
Silver and gold market predictions for 2025
Goldman Sachs predicted that gold will rise to $3,000 an ounce by the end of 2025. They explained that gold usually trades closely in line with interest rates. This is because, as an asset that doesn’t offer yield, it typically becomes less attractive to investors when interest rates are higher. On the other hand, it is usually more desirable when rates fall.
In addition, Deutsche Bank has forecasted an average gold price of $2,725 an ounce in 2025, with a range of $2,450 to $3,050 an ounce.
As for silver, Maria Smirnova said, “Silver supply has faced challenges over the past decade, remaining largely stagnant even as demand has steadily risen[…] The global silver supply has not significantly increased since 2014, leading to a supply deficit.”
As a result, the Silver Institute saw a 1% decrease in supply in 2024. This shows the potential for silver production to struggle to meet the increasing demand in the absence of new mine discoveries or expansions.
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