What does it mean for Bitcoin?
Legendary investor and Berkshire Hathaway chairman Warren Buffett revealed on CNBC this week that the company had bought nearly $17 billion in US Treasuries in its latest bid. Is the stock market crash coming and what does it mean for Bitcoin (BTC)?
Main Receptors:
Berkshire By the end of 2025, $373 billion was included in cash or cash equivalents, more than double 2023 levels.
The company's rising cash reserves precede major stock market declines, a bad sign for Bitcoin.
Buffett still sees better value in cash than in stocks
Buffett's message is straightforward: Berkshire doesn't view its recent equity returns as an attractive enough buying opportunity.
The S&P 500 fell 5.75% after hitting a record high in January.
After the decline, Buffett described stocks as “significantly” cheaper and described the sell-off as “nothing,” compared to the previous market's fall of more than 50%.
That helps explain Berkshire's recent Treasury-bill purchases. The company At $373 billion in cash and cash equivalents in 2025, it is more than double the level at the end of 2023, up from a record $334.2 billion a year ago.
Historical data shows that Buffett, who primarily calls bitcoin “rat poison,” primarily gets into cash before it happens in stocks.
In the year In 1998, for example, Buffett began trimming Berkshire's stock exposure and accumulating cash, bringing the company's cash and cash-equivalent holdings to $13.1 billion, or about 23% of total assets.
By mid-2000, that figure had risen to nearly $15 billion, or about 25% of assets, before Berkshire began deploying capital into deals when the dot-com bubble burst.
Bitcoin's positive correlation with stocks can affect prices.
Bitcoin has traded more like a stock than a traditional safe-haven over the post-2020 session, often moving in the same direction as US stocks, particularly the tech-heavy Nasdaq.
As of Wednesday, the 20-week rolling correlation coefficient between the two markets was positive at 0.47.
If Buffett's hedging strategy is correct, Bitcoin should see another crash with stocks. Fresh quantum-security concerns, war-induced inflation concerns, and a nearly 50% chance of a US recession are putting pressure on BTC prices.
Berkshire's portfolio decisions lean away from crypto-adjacent finance.
In the year In the first quarter of 2025, the company fully divested Nu Holdings, a crypto-friendly fintech company, after building its position in 2021 and 2022. He made about $250 million in profits from these investments.
Many analysts predict that the price of BTC will drop to $30,000 by 2026.
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