Despite the recent predictions by a renowned investor, bitcoin continued to soar in price, along with other digital assets. According to reports, an investor, a businessman, and author of the best-selling book, Rich Dad Poor Dad, Robert Kiyosaki, predicted that in October, there will be a big crash in the stock market generally. He went on to say that this crash will bring down bitcoin, gold, and stock, and it will be a great investment opportunity.

This prediction does not seem to have any effect on the price of Bitcoin and other cryptos. Since October, Bitcoin has broken over the $50k threshold, at press time BTC price is at $55k though there was a drop from where it was at $56k.

Effect of Expert Predictions on Investors

Sequel to the prolonged bearish market in Q3 the crypto market saw a new trend in the last week of September. Q4 saw a continuous rally in the price of Bitcoin and other assets, with BTC price crossing over the 50k threshold. The trend shows investors still flow in the feel of fresh price surge after a bearish Q3, and are not ready to sell off their assets, soon. The decision to hold is logical for investors to recover from losses as a result of the recent bearish market.

Why Bitcoin May Hit 100K Soon Despite Predictions

Bitcoin is gravitating towards the 100k threshold amidst predictions of price fall by experts. Some of the forces driving bitcoin and other digital assets prices are based on world economic conditions, Government policies, and blockchain adoption. 

World Economy – Inflation

The pandemic outbreak made a huge inflationary impact on the world economy. Consumer prices rose by 5.2 percent in the US between August 2020 to 2021. In September, inflation rose to 3.3 percent in nations that use the Euro. The high inflation rate left investors with larger funds to invest in the long term. 

Bitcoin and crypto investment seems the most viable option for investors due to the high return on investment and future security. Private Equity Managers aim cryptocurrency investment to declare high returns and maintain clients.

The recent investment trend has seen investors shifting from bonds to equity, from equity to venture capital, and from venture capital to crypto investment.

Government Policy – Federal Reserve Liquidity 

A crypto bank CEO and founder Diogo Monica thinks the federal reserve is pumping too much liquidity into the market. Excess liquidity is driving family offices towards a deflationary asset as an alternative investment. The search leads to digital gold bitcoin as the only asset that can beat inflationary impact.

Blockchain Adoption – Silicon Valley Companies’ Interest

A host of companies with a vested interest in technology, software, and the internet have recently embraced a lifestyle of exposing investors to crypto through tokenization. They prefer offering private equity investors crypto tokens instead of dividends or equity. Therefore exposing investors to cryptocurrencies through the startups they invest in.

According to the International Monetary Funds Report, substituting assets and currency with crypto tokens is the new trend in developing and emerging markets. It is a development that is characterized by poor payment systems and economic policies.

A chunk of these tokens acquired can be exchanged for bitcoin and other top digital assets. The growth in the token economy through blockchain adoption seems to have a multiplier effect on the market price seeing top assets such as bitcoin and Ethereum continue in an upward trend. Excess liquidity is driving investors to seek a deflationary investment environment that offers high returns and security.