Robert Kiyosaki: The FOMO effect of the "banana zone" as Bitcoin approaches 124,000 dollars

The author of the book Rich Dad Poor Dad – Robert Kiyosaki – has just issued a serious warning for global investors.

Robert Kiyosaki – Author of the book Rich Dad Poor DadOn platform X, he warns that the recent price surge of Bitcoin has pushed this digital currency into the "Banana Zone" (banana zone) – an area where FOMO (fear of missing out) can lead investors to make emotional and high-risk decisions.

The price of Bitcoin has recently surpassed the threshold of $118,000, setting a new peak and raising hopes that it could continue to rise to $124,000 or more. However, Kiyosaki offers clear advice for this stage: Don't invest based on emotions, invest based on strategy.

"Be a smart investor. Don't be a greedy pig or you will be slaughtered. Be a pig that knows enough to be better," he said, emphasizing that buying impulsively during market euphoria often leads to significant losses.

He shared that he bought at a price of 110,000 USD, demonstrating long-term confidence in the upward trend, but also warned against "jumping into" the market when prices are at a peak without a clear reason. His strategy is to wait for the market to correct, then buy at a lower price.

Traders are pushing the market into the fear & greed zone

The concept of "Banana Zone" was popularized by the CEO of Real Vision and macro investor Raoul Pal. This term describes a parabolic price increase phase, often occurring with assets that have a limited supply but extremely high demand — like Bitcoin.

Kiyosaki also expressed a similar view to Raoul Pal, arguing that the scarcity of Bitcoin means that whenever demand increases sharply, this coin will face immense upward price pressure due to limited supply.

According to him, this price increase cycle is often driven by the participation of large institutions, media frenzy, and FOMO waves from retail investors. While it offers breakthrough profit potential, it also brings high volatility, extreme risks, and emotion-driven trading.

Like previous price surges, Kiyosaki warns that the current wave of optimism may only be a short-term increase, followed by a risk of strong correction. He emphasizes that many new investors are "jumping into" the market without fully understanding the high risks of crypto trading.

Kiyosaki believes that the wave of buying driven by FOMO could make the market more unstable. When prices only rise without correction, inexperienced investors may panic, leading to a "massacre" of those who bought at high prices.

According to him, this phase often sees many people rushing into investments without thorough research, merely hoping to "make quick money." This herd mentality often leads to massive buying at the peak and panic selling when prices plummet.

He recommends that investors focus on gaining knowledge, maintaining discipline, and not chasing price surges. This is not the time to blindly follow the crowd, but an opportunity to cultivate a strong and rational investment mindset.

Traders push Bitcoin price higher amidst rising risks

Bitcoin has climbed to $118,000, making bulls and optimistic analysts excited. Many in the market believe that this asset is in the early stages of a long-term bull run.

Price predictions of $124,000 have even been deemed overly cautious by some groups. More optimistic individuals forecast that Bitcoin could reach $250,000 by the end of 2025, and even $1 million by 2030, especially if macroeconomic difficulties continue to erode confidence in fiat currencies.

Having long criticized central banks for controlling global monetary policy and the fiat money system, Robert Kiyosaki believes that Bitcoin is "the people's money" and that this leading cryptocurrency is an effective hedge against inflation. He has repeatedly praised Bitcoin for its fixed supply and decentralized nature.

In June 2024, Kiyosaki once again reaffirmed his belief in Raoul Pal's Banana Zone theory and has since become an icon in the new bull market.

He shared that he bought Bitcoin for the first time when the price was only 6,000 dollars. Those early investment decisions yielded significant profits and he emphasized that profits come from smart and patient investing, not from chasing rumors or short-term speculation.

Minh Anh