Kiyosaki’s Crash Alert Sparks Fear Across Crypto Markets
- Bitcoin and Ethereum dip as Fed caution and Trump–Xi tensions shake investor confidence.
- Robert Kiyosaki warns of a major crash, urging investors to hold gold, silver, and crypto.
- Institutional inflows into Bitcoin and Ethereum remain strong despite market volatility.
The cryptocurrency market fell sharply following cautious signals from the U.S. Federal Reserve. Renewed trade tensions between Donald Trump and China’s Xi Jinping added further pressure. Bitcoin slipped 1.50% to $110,042, and Ethereum fell 1.95% to $3,876 over the past week. The decline showed investors pulling back from risk amid global economic uncertainty and unclear policy direction.
Author Robert Kiyosaki issued a fresh warning on X, declaring a massive crash is beginning. He urged investors to secure wealth with silver, gold, Bitcoin, and Ethereum. His post reignited debate about the safety of traditional markets. Traders responded with mixed reactions, with some citing parallels to previous downturns.
Kiyosaki’s comments followed earlier alerts he made in October after new U.S. tariffs on China triggered a market sell-off. That decline strengthened his argument that the financial system remains vulnerable to policy shocks and global disruptions.
Fed Caution and U.S.–China Tensions Deepen Market Uncertainty
Federal Reserve Chair Jerome Powell said the recent 25-basis-point rate cut could be the final one for 2025. He added that the Fed might wait a cycle before taking further steps. His remarks reduced expectations for future easing and discouraged market optimism. The comments quickly pressured both equity and crypto assets.
The Dow Jones Industrial Average fell 0.2%, while the S&P 500 closed flat. Traders viewed Powell’s statement as confirmation that monetary conditions would remain tight. The cautious tone pushed investors to move away from risk assets and toward safer holdings.
The recent Trump-Xi Jinping meeting did not cool markets. The talks were described as productive by both leaders although they appeared insignificant to investors. The absence of a clear deal created doubt of future trade relations. The traders viewed the result as a truce and not a permanent improvement.
New tariff threats put a strain on risk assets. Analysts observed that the international markets are still responsive to any increase between Washington and Beijing. The high stress level has led to a decrease in confidence in various sectors, including crypto.
Institutional Demand Remains Strong Amid Kiyosaki Warning
The institutional demand of digital assets remained high despite the decline. On October 28, BlackRock, Fidelity, and Ark 21 Shares recorded network inflows of $202.48 million on the Bitcoin ETFs. The amount inflowed in Bitcoin funds has surpassed $62 billion. The data indicated that there was institutional interest despite the short-term losses.
Ether funds were also appealing to buyers, as they had net inflows of $246 million. The long-term presence of massive investors implied confidence in the earnings of crypto assets in the long term.
Experts were divided on the relevance of the warnings made by Kiyosaki. Critics complained about his recurring crash foretelling, pointing out that past alarms were followed by short-lived corrections, not systemic failures. Others claimed that market trends are like the conditions that had been experienced in the past before the occurrence of past crises.
Related: Kiyosaki Warns Inflation Will Hit Hard Invest in Real Money
Analyst Jonesy stated that rate cuts have resumed and warned that the situation mirrors past market cycles. He said this is not fearmongering but a reflection of historical patterns. Jonesy compared the current signals to 2000, 2007, and 2020, each followed by major downturns.
Supporters of Kiyosaki’s outlook highlighted the surging U.S. national debt, which has exceeded $35 trillion. They warned that ongoing fiscal deficits could place severe pressure on the financial system. Investor Avinash Mishra warned that the market bubble is nearing its breaking point. He added that he has been buying silver and Bitcoin since 2020 to protect against fiat risks.
Cryptocurrency markets are not calm following the words of Powell and the unsettled Trump-Xi talks. Sentiment is still dragging under the weight of tight monetary policy and increasing geopolitical uncertainty. Bitcoin and Ethereum are in permanent selling pressure as traders are awaiting better policy and trade indications.
