Buffett Offloads $13.3 Billion in Stocks, Bad Sign for Bitcoin?

There have been signs for some time that the economy is slowly heading into recession. For stocks, cryptocurrencies, and other high-risk assets, this is often not positive. Warren Buffet’s Berkshire Hathaway sold a significant amount of stock last quarter.

Berkshire In criticism: a crisis on the way?

His huge investment fund Publish quarterly numbers. This indicates that it sold shares worth $13.3 billion. Much of this went into US government cash and bonds.

It also used a portion of the uninvested funds to buy back its shares, which is an accounting trick that often inspires investor confidence because the share price usually goes up. Moreover, she didn’t just sell stocks. It has also invested $2.9 billion in other publicly traded companies. However, the net amount of shares sold is $13.3 billion.

Since the end of 2021, the investment fund has never had as much cash on the balance sheet as it does now. In the most recent quarter, the net total rose $2.6 billion to $130.6 billion.

Bitcoin early stock ticker

The market sees stock market performance and VIP opinion on Berkshire as an important market indicator. After all, the fund has built a legendary status over the years. Warren Buffett is even called the “Oracle of Omaha”.

In addition, Berkshire Hathaway owns many stocks that are an indicator of the performance of the US economy, such as retail, banking and utility companies.

Bloomberg analyst Mike McGlone wrote on Twitter that Bitcoin (BTC) has a very high correlation to stocks. It is often a leading indicator of other risky assets. So investors first sell bitcoin (and cryptocurrencies in general) before they decide to sell stocks. The former is more serious. “If the worst isn’t over for stocks, then it should [dat aan de bitcoin koers] McGlone said.

Bitcoin could fall back on risky assets –
If the worst is not over for risky assets, # Bitcoin You may lead the way down. pic.twitter.com/UlEVjCEKwr

– Mike McGlone (@mikemcglone11) May 8, 2023