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Warren Buffett, the legendary capitalist and president of Berkshire Hathaway, revealed connected CNBC this week that his steadfast purchased astir $17 cardinal successful US Treasury bills astatine the latest auction. Is a banal marketplace clang coming and what does it mean for Bitcoin (BTC)?
Key takeaways:
Berkshire held $373 cardinal successful currency oregon currency equivalents arsenic of 2025’s close, much than treble the levels successful 2023.
The firm’s rising currency reserves typically precede large banal marketplace crashes, a atrocious motion for Bitcoin.
Buffett inactive sees amended worth successful currency than successful stocks
Buffett’s connection is straightforward: Berkshire does not spot the caller equity pullback arsenic a sufficiently charismatic buying opportunity.
For context, the S&P 500 has fallen astir 5.75% since reaching a grounds precocious successful January.
S&P 500 play show chart. Source: TradingViewBuffett said stocks are not “substantially” cheaper aft the diminution and described the sell-off arsenic “nothing” compared with earlier downturns successful which markets fell much than 50%.
That helps explicate Berkshire’s latest Treasury-bill purchase. The institution ended 2025 with astir $373 cardinal successful currency and equivalents, up from a grounds $334.2 cardinal a twelvemonth earlier and much than treble its level astatine the extremity of 2023.
Buffett, who famously called Bitcoin “rat poison,” typically gets into currency earlier large banal crashes, historical information shows.
In 1998, for instance, Buffett began trimming Berkshire’s banal vulnerability and raising cash, pushing the company’s currency and cash-equivalents holdings to $13.1 billion, oregon astir 23% of full assets.
Berkshire’s currency and cash-equivalents holdings chart. Source: GuruFocus.COMBy mid-2000, that fig had climbed to astir $15 billion, oregon astir 25% of assets, earlier Berkshire started deploying superior into bargains arsenic the Dot-com bubble burst.
Bitcoin's affirmative correlation with stocks whitethorn wounded prices
Bitcoin has traded much similar a banal than a accepted harmless haven for overmuch of the post-2020 period, often moving successful the aforesaid absorption arsenic US equities, particularly the tech-heavy Nasdaq.
As of Wednesday, the 20-week rolling correlation coefficient betwixt the 2 markets was affirmative astatine 0.47.
Nasdaq Composite and BTC/USD’s 20-week correlation coefficient chart. Source: TradingViewIf Buffett’s risk-off strategy is correct, past Bitcoin should spot different clang alongside stocks. Fresh quantum-security concerns, war-driven ostentation risks, and nearly 50% US recession odds are putting unit connected the BTC price.
Berkshire’s portfolio decisions person besides leaned distant from crypto-adjacent finance.
In the archetypal 4th of 2025, the steadfast fully exited Nu Holdings, a crypto-friendly fintech company, aft gathering its presumption successful 2021 and 2022. It secured astir $250 cardinal successful profits from these investments.
Multiple analysts foretell BTC’s terms to driblet to arsenic debased arsenic $30,000 successful 2026.
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