Kiyosaki's Warning Triggers Reevaluation of Bitcoin's Role in Equity Declines

Financial expert Robert Kiyosaki has predicted a historic collapse in stock and bond markets, citing factors such as capital concentration around artificial intelligence narratives, escalating conflicts, sovereign debt levels without precedent, and the liquidation of baby boom generation portfolios.

The associated recommendation is to hold gold, silver, and Bitcoin instead of cash. However, Kiyosaki's classification of Bitcoin as a hedging instrument during equity declines has been disputed in the crypto sector.

Data from 2025 shows that the correlation between Bitcoin and the S&P 500 averaged 0.50, indicating that institutional investors and traditional retail traders are now treating Bitcoin as a position within a multi-asset portfolio.

This shift in price formation has led to an asset whose marginal demand comes from allocators rebalancing risk across asset classes behaving as a risk asset when those allocators reduce exposure.