Wall Street investors are having a gala ride with the S&P 500 already up by 4.5% since the beginning of 2024 and 20% over the last year. Tech giants like Meta have announced robust results for 2023 driving the market higher on Friday, February 2. However, market veterans like Robert Kiyosaki flash a warning sign while predicting a doomsday for the stock and the bond market, but backing Bitcoin.

Robert Kiyosaki: Bitcoin Offers Wealth Protection

Rich Dad author Robert Kiyosaki offers a cautionary perspective on the current surge in the stock market, challenging perceptions of a robust economy. He said that the robust results from the “Magnificent 7” firms could be an illusion as they are backed by U.S. government funding. Kiyosaki urges investors to exercise vigilance, signaling a potential downturn in both the stock and bond markets.

Highlighting his preference for Bitcoin, Kiyosaki positions the cryptocurrency as a safeguard against wealth erosion resulting from monetary practices. He points to figures such as Federal Reserve Chairman Powell, Treasury Secretary Yellin, and Wall Street bankers, alleging that they contribute to wealth theft through inflation, taxation, and stock price manipulation.

Emphasizing the protective attributes of Bitcoin, Kiyosaki underscores his choice to save and invest in the cryptocurrency, steering clear of traditional assets like stocks, bonds, and fiat currency.

BTC And Traditional Equity Markets

Last year in 2023, Bitcoin (BTC) and the broader cryptocurrency markets managed to break free from the traditional equity market, outperforming the latter by a huge margin. However, the equity market has been filling the gaps with a strong rally in the S&P 500 in January, and the Bitcoin price staying stable.

By design, Bitcoin seeks to be the hedge to the traditional equity market while taking the role of digital gold. with the launch of Bitcoin ETF, the asset class maturity has improved amid strong strong institutional inflows.

There’s a high chance that with the Bitcoin ETFs live in the market, institutions can move their funds here, along with Gold, as a hedge against any equity market crash. This will be the real test of Bitcoin showing its characteristic of being a hedge to the traditional market.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.