Robert Kiyosaki, the popular author of the personal finance book "Rich Dad, Poor Dad," has continued to accumulate Bitcoin as the asset remains in a correction. He has also been buying gold and silver, a sign that he expects all three assets to rebound. His latest purchases followed a brief post-election slump in the Bitcoin price. Because "Rich Dad, Poor Dad" has ranked among the best-selling personal finance books for decades, his buying tends to draw attention well beyond the crypto industry.

Bitcoin Dips After Midterms, Then Recovers

Bitcoin and other cryptocurrencies initially dropped after the US midterm elections, as investors remained concerned about the impact of Democrats' wins in the House of Representatives and the Senate. BTC fell to $75,655, its lowest level since September 16.

The prevailing view among investors is that Democrats will derail Trump's crypto agenda, including the CLARITY Act, whose odds of passing have continued to fall in recent months. There is also a likelihood that they will advance bills to increase regulation of the crypto industry. While Trump has the power to veto legislation, they will have room to include some of their crypto provisions in mandatory bills. The fate of the CLARITY Act under the new Congress is therefore one of the clearest signposts for the industry to watch, since its passage or failure would shape the regulatory environment for digital assets in the United States.

Bitcoin's retreat proved short-lived, as the coin resumed its uptrend and reached its highest point since Monday.

In a statement during the decline, Kiyosaki said he had bought the dip, citing several major factors. He believes that Bitcoin, silver, and gold will perform well over time because of the growing public debt in the United States. The debt is indeed soaring, and analysts expect that a deadlocked government will make the situation worse. Government borrowing jumped to $40 trillion in September, and US Debt Clock data shows that the total has already crossed the $40.5 trillion mark.

Bitcoin as Digital Gold

Bitcoin has long been seen as digital gold because of its supply cap of 21 million coins, which will never be changed. Unlike fiat currencies, it cannot be manipulated by any central authority such as a central bank. Kiyosaki has also argued that Bitcoin can serve as a hedge against inflation as the money supply rises. Indeed, data shows that the global M2 money supply has been on an upward trend in recent years.

Other Top Investors Are Also Buying

Kiyosaki is not the only prominent investor adding to his Bitcoin position. Michael Saylor has maintained his bullish outlook, with Strategy boosting its Bitcoin holdings. The company now holds 849,327 coins. Strive, the firm founded by Vivek Ramaswamy, has also been buying BTC and now holds 43,124 coins, while Coinbase has increased its holdings to 18,000.

Meanwhile, Ray Dalio, the billionaire founder of Bridgewater Associates, has also been buying Bitcoin. In a statement, he said that Bitcoin will become necessary as countries face major debt problems in the future.

Still, a key challenge is that American investors appear to be selling their coins, possibly as fears of a Democratic win rise. SoSoValue data shows that spot Bitcoin ETFs recorded more than $514 million in outflows this month, after losing $515 million in October. The outflows could reflect positioning ahead of the US midterm elections. That split, with corporate treasuries and veteran fund managers adding coins while ETF investors withdraw, frames the current market as a divergence between long-term accumulators and shorter-term fund flows, and upcoming SoSoValue reports will show whether the selling pressure persists.

Technicals Point to Further Weakness

A major risk is that technical indicators suggest Bitcoin may be exposed to further downside. On the daily chart, the coin has slumped below the 50-day Exponential Moving Average (EMA), and it has also fallen below the Supertrend indicator, which is considered a risky development. The price appears to be forming a bearish flag pattern, a structure made up of a vertical line followed by a horizontal channel, which usually leads to a bearish breakout over time. Bitcoin has also dropped below the 23.6% Fibonacci Retracement level.

As a result, the coin may continue falling, potentially to the 50% retracement level of $72,602. That level, together with the 50-day EMA, is the nearest reference point traders are watching as the correction plays out.

Source: The Market Periodical