Warren Buffett bought $17B in US T-bills: A bad omen for Bitcoin price?
Why it matters: Buffett's $17 billion T-bill purchase and $373 billion cash hoard could signal a significant stock market correction, potentially impacting Bitcoin prices.
- Warren Buffett's Berkshire Hathaway bought $17 billion in US Treasury bills, increasing its cash and equivalents to $373 billion by 2025's close, more than double 2023 levels.
- Buffett believes stocks are not "substantially" cheaper after a 5.75% S&P 500 decline, seeing better value in cash and describing the sell-off as "nothing" compared to past downturns.
- Historical data shows Buffett typically raises cash before major stock market crashes, as seen in 1998-2000 before the Dot-com bubble burst.
- Bitcoin (BTC), with a positive 0.47 correlation to the Nasdaq, is predicted by some analysts to drop as low as $30,000 in 2026 if a stock market crash materializes.
- Berkshire Hathaway fully exited its position in crypto-friendly fintech company Nu Holdings in Q1 2025, securing approximately $250 million in profits.
Warren Buffett's Berkshire Hathaway has significantly increased its cash reserves, purchasing $17 billion in US Treasury bills and holding $373 billion in cash equivalents by the end of 2025, a move historically preceding stock market downturns. This strategy, coupled with Bitcoin's positive correlation to equities, suggests a potential crash for BTC if Buffett's bearish outlook on stocks proves accurate.
