Warren Buffet warns of market doom that can trigger a Bitcoin crash

The well-known billionaire investor Warren Buffet is reluctant to spend $137 billion cash pile. Bitcoin recovered above $9,000 mark this week.

Billionaire investor Warren Buffet and Berkshire Hathaway are reluctant to spend their $137 billion cash pile, and the cautious approach towards the abrupt recovery of the US stock market may spoil the recent Bitcoin rally. The leading cryptocurrency had long broken out of the short term correlation between the US stock markets and its price. But a potential equities correction in the short-term raises the probability of a pullback in all volatile and speculative assets.

The price of bitcoin continues to hover around $9,000.

BTCUSD Chart
BTCUSD Chart

The price of the leading cryptocurrency, bitcoin, crossed above the $9,000 mark during early Asian trading times before retracing back to around $8,800 at the time of writing. This month Bitcoin’s price saw a vertical rally to $9,500 in a short period. It took less than two months for the leading cryptocurrency to rise by nearly three-fold from $3,600 in mid-March. The organic spot volume last month suggested that from $3,600 to mid-$7,000, retail investors accumulated bitcoin. The highly anticipated bitcoin halvening event is scheduled a week from now. Several expect that the halvening event would have a positive impact on the price of bitcoin.

 

“$137 billion cash pile is not enough if bad things start to pile up in the market.”

While speaking at the annual shareholders meeting of Berkshire Hathaway, Mr.Buffet said that 137 billion USD is not a large cash pile if bad things start to pile up in the market. Berkshire has major stakes in multinational companies like Coca Cola and Kraft Heinz. If the market begins to go into the opposite direction of what analysts expect, then the $137 billion cash pile can be used to assist Berkshire’s portfolio companies. Currently, bitcoin is facing a robust overhead resistance in the $9,500 to $9,900 range, and the US stock market is still coping with the economic consequences of the ongoing coronavirus pandemic. The US has been the hardest-hit country with the coronavirus as the country has the most number of positive cases and the highest death toll in the world. 

ADVERTISEMENT
Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

Leave a reply

Please enter your comment!
Please enter your name here