Bitcoin (BTC) and Risk Assets Should Be Worried About Warren Buffett’s Massive Stock Dump, Says Analyst Nicholas Merten
The large stock selling by investment icon Warren Buffett has been interpreted by one prominent crypto expert as bad news for Bitcoin (BTC) and other risk assets.
DataDash presenter Nicholas Merten warns his 511,000 YouTube viewers in a new video update that Buffett’s decision to sell off billions of dollars worth of equities is probably a gloomy signal for the financial markets.
Merten argues that Buffet’s stock selling is another evidence that Bitcoin’s recent run is about to fizzle out. He adds that the current upswing in the price of the king cryptocurrency does not show any of the pricing patterns that have preceded previous bull market cycles and that he does not foresee anything in the near future that would catalyze a move to the higher.
Merten claims that Bitcoin has not seen the enormous bull run that was expected in reaction to the US financial crisis.
Consider current pricing actions. It seems to be somewhat choppy and uneven. No, there won’t be a Bitcoin bank robbery as they keep telling us. When people are changing banks, looking for higher yields, and losing faith in the financial system, it seems like the perfect time for Bitcoin to be that asset, but we’re not seeing that reflected in the price. What does that tell us? Why will Bitcoin’s value increase in the future?
After the Federal Reserve conducted a series of rate rises meant to pull down inflation and there is a coming recession, Merten claims that Buffett’s stock dump is an indication that the investing legend does not feel the markets are moving to the upside any time soon.
When the economy is contracting, there are few fresh stories that may keep Bitcoin’s price rising over the long run. And this comes at a time when the financial sector is actively working to reduce its exposure to risk.
Warren Buffett is a buyer while others are selling because he knows the price will rise. Typically, he buys at the beginning of a new cycle. When it comes to cash on hand, Warren Buffett’s Berkshire Hathaway is sitting on one of the largest piles it has ever seen. False, Berkshire Hathaway dumped billions of dollars worth of shares in the recent quarter. At the time of writing, the price of one bitcoin is $27,485, down 1.4% in the last 24 hours.
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