Amidst the recent banking turmoil in the US, prominent financial figures have shared their insights on how investors can protect themselves.
Robert Kiyosaki’s Warning and Bitcoin’s Role:
- Robert Kiyosaki, author of “Rich Dad, Poor Dad,” cautioned investors about a looming banking crisis.
- He likened the current financial system to US Navy Flight School, where student pilots learn to land in turbulent conditions.
- Kiyosaki advised investors to “bail out” and suggested Bitcoin, gold, and silver as shields against economic crashes.
Concerns About Regional Banking Sector:
- The recent losses reported by New York Community Bancorp (NYCB) have raised concerns about the stability of the regional banking sector in the US.
- NYCB’s acquisition of Silvergate after the 2023 crisis and the subsequent plunge in its share price hint at instability in the sector.
Other Experts’ Views:
- BitMex Co-founder Arthur Hayes predicted impending bankruptcy for NYCB and suggested that Bitcoin’s price could reach $1 million.
- Ark Invest CEO Cathie Wood believes Bitcoin is reasserting its role as a “flight to safety” and will surpass gold in the future.
Bitcoin’s Performance and ETF Approval:
- Bitcoin has had a bullish run in 2024, fueled by the approval of spot Bitcoin Exchange-Traded Funds (ETFs) by the US SEC.
- However, outflows from the Grayscale Bitcoin ETF (GBTC) raised concerns, causing a temporary dip in price.
- Bitcoin has since recovered, gaining 6% in the last 7 days and trading at $44,764.5 at the time of writing.
Financial experts emphasize the importance of preparing for potential banking crises and suggest Bitcoin as a potential hedge against economic downturns. Bitcoin’s recent performance and ETF approval add to its appeal as a safe haven asset.