The cryptocurrency market is in turmoil as Bitcoin, Ethereum and other major cryptocurrencies return to levels last seen in 2020. The number one cryptocurrency by market cap lost critical support and dropped to the lower area of its current levels. .
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At the time of writing this article, Bitcoin is trading at $23,300 with losses of 16% and 22% in the last 24 hours and 7 days, respectively. With the macroeconomic outlook looking gloomy, with inflation rising and the US Federal Reserve (FED) poised to curb it, conditions seem to favor the bears.
As a result of the recent downward price action, some Bitcoin supporters have switched and turned their attention to different assets. Robert Kiyosaki, the best-selling author of the financial book “Rich Dad Poor Dad,” could be included in this group.
Kiyosaki has been a long time supporter of Bitcoin. In 2021, he recommended to his audience that he buy Bitcoin to protect himself from a possible economic downturn.
At the time, the author claimed that a “giant crash” and a “new depression” could hit the US economy. Rising US dollar inflation, coupled with an increase in US Federal Reserve (FED) interest rates, point to economic headwinds.
But Kiyosaki may not have been heeding his own advice, posting the following via his personal Twitter account:
Best INVESTMENT: Cans of Tuna. Inflation about to take off. The best investments are cans of tuna and baked beans. You cannot eat gold, silver or Bitcoin. You can eat cans of tuna and baked beans. The food the most important. The next problem is hunger. Invest in the solution. Take care of yourself.
Some people responded that they thought Kiyosaki might have been joking. Others appear to have taken the advice to heart as they believe the global economy is about to enter a dark time.
Bitcoin support and resistance levels
However, Kiyosaki has already predicted a collapse that could lead to an economic depression. In 2021, he said:
BIDEEN & FED need inflation to prevent the New Depression. Inflation rips off the poor. Inflation makes the rich richer. Biden and the corrupt Fed. Brace yourselves: giant shock and then another depression. Be smart Buy, gold, silver, Bitcoin.
The fundamentals that led Kiyosaki to trust BTC as a good investment seem to be valid: cryptocurrency is a way to get out of the Fed-controlled economy and gain more financial freedom.
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At the time of writing, the Bitcoin order book on Binance looks slim in either direction. There are $7 million worth of offers of around $22,000 and $11 million worth of orders of $26,500. A break below or above either could determine the next BTC price trend.