The Bitcoin (BTC) price is heading to $50,000 in 2021, says the best-selling author of Rich Dad Poor Dad, Robert Kiyosaki.
Kiyosaki pinpointed that a “wall of institutional money” is coming to Bitcoin in 2021, which could push the price up further.
Why is Kiyosaki talking about institutional interest in Bitcoin?
Kiyosaki, who is also a real estate mogul and an investor in precious metals, has historically liked various stores of value including silver.
Based on the institutional inflow into Bitcoin, Kiyosaki noted that BTC below $20,000 is ideal, as $50,000 is the next target. He said:
“Glad I bought Bitcoin. Next stop $50k. Wall of institutional money coming 2021. Buy below $20k. If you missed Bitcoin, buy silver. Silver set to move due to AOC’s Green New Deal. America in trouble. Future bright for gold silver Bitcoin and entrepreneurs.”
If Bitcoin hits $50,000, its market cap would reach $928 million, which is around 10.3% of gold’s market cap compared to the current 2.9%.
Bitcoin is in a favorable position to rally in the upcoming months because of its low correlation with the stock market.
Traditional safe-haven assets, like gold, often pull back when U.S. equities rally. In the case of BTC, it has shown a relatively low correlation with U.S. stocks. Hence, Bitcoin has seen sharp uptrends even when equities increase in value.
Bitcoin correlation vs. Gold, S&P500. Source: Digital Assets Data
For instance, over the past 24 hours, Bitcoin price has increased by around 4.5%, recording a 6.5% gain at the day’s peak.
BTC rallied in tandem with gold, while the Asian markets slumped and U.S. stocks slightly retreated. Holger Zschaepitz, a market analyst at Welt, said:
“Asian stock retreated w/European and US Futures after a mixed Wall St session, amid caution over econ risks from virus-related curbs and ongoing US fiscal stimulus talks. Bonds gain w/US 10y yields
The lack of correlation between Bitcoin and U.S. stocks likely comes from two factors. First, when risk-on assets increase, BTC benefits from an overall rise in investor appetite.
Second, stocks have increased in recent months due to unprecedented central bank liquidity injections. Relaxed financial conditions benefit Bitcoin because investors move to hedge against inflation.
CME and Grayscale trading activity continue to surge
The CME Bitcoin futures market’s open interest is hovering at $1.07 billion, just behind OKEx and Binance Futures.
The data shows that institutional demand for Bitcoin is high to the point where institution-focused platforms are surpassing major retail exchanges in open interest and trading volume.
Grayscale has also surpassed $13 billion in assets under management on Dec. 15, indicating a large increase in institutional inflow into Bitcoin.
Record AUM for Grayscale…$13 billion https://t.co/bSFF7Jtimb
— Barry Silbert (@BarrySilbert) December 14, 2020
Institutions appear to be rapidly accumulating Bitcoin following the high-profile publicized investments from the likes of MicroStrategy, Square and MassMutual. Consequently, as Cointelegraph reported, this has led to aggressive dip-buying in both the futures and options markets.
Title: Rich Dad Poor Dad author explains why Bitcoin will see $50,000 next year
Sourced From: cointelegraph.com/news/rich-dad-poor-dad-author-explains-why-bitcoin-will-see-50-000-next-year
Published Date: Tue, 15 Dec 2020 10:35:21 +0000