Robert Kiyosaki warns of banana zone FOMO as BTC eyes $124K

Rich Dad Poor Dad author Robert Kiyosaki has issued a stark warning to crypto investors worldwide.

On X, he warned that Bitcoin’s most recent surge put the cryptocurrency in what he described as the “Banana Zone,” ripe for potentially damaging emotional decision making based on FOMO, the fear of missing out.

Bitcoin recently jumped above $117,000, a new record peak, igniting speculation it could surge as high as $124,000 or higher. Kiyosaki has a great answer to the run-up: Don’t go by emotion but strategy.

“Be a smarter investor,” he said, noting that impulsive purchasing during euphoric market cycles is often associated with crippling losses. “Don’t be a HOG. HOGs get slaughtered. Be a PIG instead. PIGs get fat.”

He shared that his buys were at $110,000, indicating conviction that we are long-term bullish, and cautioned against diving into the market at the top for no particular reason. His strategy? Wait for the market to correct, then buy back at a discount.

Traders fuel fear and greed in banana zone rally

Real Vision CEO and macro investor Raoul Pal is credited with popularizing the “Banana Zone”. It refers to a phase of rapid, nearly vertical price growth typically limited to high-demand, low-supply assets such as Bitcoin.

Kiyosaki expressed a similar sentiment to Pal, stating that the “limited” nature of Bitcoin means that when there is an appetite for the coin, thereby driving up its interest, it faces a ton of upward pressure due to its scarcity.

This cycle is usually driven by institutional adoption, media frenzy, and retail investor frenzy. It delivers the possibility of explosive gains but also introduces volatility, extreme risk, and emotional trading.

As with previous surges, the current burst of optimism could lead to a short-lived price spike and some real downside risk, Kiyosaki said. He cautioned that many fresh investors are diving into the markets without understanding how fickle a game trading cryptocurrency can be.

This flood of FOMO-driven buyers, he said, could add significant instability to the market. He said that as the price only goes up, inexperienced investors could become panicky, resulting in a “slaughtering” of those who bought in at these levels.

In Kiyosaki’s view, this stage sees many investors piling in without doing any independent research, hoping for a quick buck. This “herd instinct” frequently results in excessive buying at the peak, with mass panic selling when the price “falls off a cliff”.

He said investors should focus on educating themselves instead of chasing price surges while maintaining discipline. He cautioned that this was not the time to follow the crowd blindly, but rather an opportunity to sharpen their thinking.

Traders push Bitcoin higher as risk escalates

Bitcoin’s climb to $118,000 has bulls and analysts cheering. Some in the market believe the asset is in the early stages of a long-term bull run. 

Estimates of $124,000 or more are already being labeled conservative by certain circles. The more aggressive forecasters call for $250,000 by the end of 2025, and even $1 million by 2030 — particularly if macroeconomic travails continue to erode faith in fiat currencies.

Kiyosaki, an ardent critic of central bank control over global monetary policy and fiat currency systems, believes Bitcoin is “people’s money” and that the flagship cryptocurrency presents a strong hedge against inflation. He’s sung Bitcoin’s praises for its fixed supply and decentralized nature multiple times. In June 2024, he repeated his faith in Raoul Pal’s Banana Zone theory and became a legendary figure of the upcoming bull market.

He says he bought his first Bitcoin when the price was $6,000. Those early decisions have more than paid off, and he emphasizes that gains did so because he was investing smart and patiently, not gambling on hype.

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