Bitcoin’s August curse—is it real? Robert Kiyosaki, the famed author of *Rich Dad Poor Dad*, is betting on a price drop to scoop up more BTC at a discount. But is he onto something, or is this just another loud prediction in a noisy market? Let’s cut through the hype and unpack the real risks threatening Bitcoin this month, plus three actionable steps to stay ahead.
The Fear of a Fiscal Cliff
The U.S. economy is skating on thin ice. In July 2025, Congress passed a massive bill extending tax cuts and raising the debt ceiling by $5 trillion. With public debt projected to exceed 116% of GDP, the Treasury’s cash reserves are dwindling fast. By late August, the government could run out of money to cover basic obligations—think public salaries, Social Security, or debt interest. A technical default, unprecedented in modern U.S. history, could spark panic across markets, including crypto.
Why does this matter for Bitcoin? Uncertainty drives investors to safe havens like gold or cash, not volatile assets like BTC. If markets wobble, expect a sell-off as traders ditch riskier bets.
What to do: Watch the debt ceiling talks closely. If headlines signal a stalemate, consider trimming your Bitcoin position to avoid short-term volatility. A stable resolution, however, could keep BTC’s momentum intact.
The Fed’s Tightrope Walk
The Federal Reserve is caught in a bind. Inflation is cooling, and Q2 growth hit a solid 2.3%, with unemployment steady at 4.1%. Yet, the Fed’s keeping rates at 4.25–4.5% to tame lingering price pressures.
High rates choke liquidity, making it harder for capital to flow into speculative assets like Bitcoin. Add to that the drama around Fed independence—Trump’s push for rate cuts and a new chair, plus a governor’s resignation on August 8—could rattle markets further.
Bitcoin thrives on loose money and risk appetite. If the Fed stays hawkish or political meddling spooks investors, BTC could face downward pressure.
What to do: Monitor Fed statements and Trump’s rhetoric. A hint of rate cuts could boost Bitcoin, but prolonged uncertainty might push prices toward the $96,000 psychological level. Stay liquid to capitalize on dips.
Technical Warning Signs
Bitcoin’s charts are flashing caution. After hitting $120,000, BTC pulled back to $112,000, showing weak buying momentum. Weekly charts reveal a “shooting star” pattern—a bearish signal of rejection at highs.
The monthly RSI above 72 screams overbought, and a flattening MACD hints at fading bullish steam. Key levels to watch: $112,000 support, with $102,000–$104,000 as a stronger base. A break below $96,000 could trigger a slide to $90,000, aligning with Kiyosaki’s call.
Historical data backs the caution. August has been rough for Bitcoin, averaging a -7.45% drop in years like 2014, 2018, and 2022, often due to profit-taking after prior rallies.
What to do: Set alerts at $112,000 and $96,000. If support holds, it’s a buying opportunity. If it breaks, wait for confirmation near $90,000 before jumping in. Avoid chasing highs without strong volume.
The Bigger Picture: Don’t Fall for Hype
Kiyosaki’s bold predictions grab headlines, but they’re not gospel. Bitcoin’s volatility doesn’t bend to catchy narratives or “curses.” Big players like him can afford to wait years for a thesis to play out, riding out losses that would crush retail traders. The market doesn’t care about social media buzz—2024’s bulls got burned betting on a crash, just as 2022’s bears missed the recovery.
Your move? Know your goals and risk tolerance. A correction isn’t a disaster; it’s a chance to buy low if you’re long-term bullish. But don’t blindly follow gurus. Use data—charts, economic signals, and your own analysis—to guide your decisions.
Read More:
Solana’s 13% Drop in 7 Days: What Traders Need to Know Now
Why Crypto Markets Crash Without Warning (And How You Can Stay Safe)
How Trump Media’s $2B Bitcoin Bet and New Token Could Redefine Social Platforms
