Warren Buffett and Berkshire Hathaway still do not want to spend 137 billion dollars in cash. Their cautious attitude towards an unexpected improvement in the US stock market may ruin the recent rise in Bitcoin (BTC).
The highest rated cryptocurrency on the market value has long broken its short-term relationship with the US stock market. But the potential correction of stocks in the short term increases the likelihood of a decrease in all risky and speculative assets.
Technically, Bitcoin has more reasons to fall than rise from $ 9,000.
The price of bitcoin in a short period of time has grown to $ 9,500. It took BTC less than two months to nearly triple with $ 3,600.
Most of the positive sentiment about the Bitcoin rally in April was due to the hegemony of the organic spot size. He suggested that from $ 3,600 to an average of $ 7,000, retail investors accumulated BTC.
In previous rallies, fake orders from the futures market created short-term speculative bubbles that exploded as soon as a large whale triggered sales in a row.
Although a large volume of exchanges, such as Coinbase, can be considered a new data source, it cannot justify the sustainability of such a significant two-month jump. In addition, Buffett is struggling to find value in the stock market to drive major acquisitions.
Speaking at the annual meeting of shareholders in Berkshire Hathaway, Buffett said that $ 137 billion is not a lot of money if bad things start to accumulate in the market. Berkshire has significant stakes in leading blocks such as Coca Cola and Kraft Heinz. If the market starts in the opposite direction, analysts expect, a heap of money can be used to help Berkshire portfolio companies.
Bitcoin reaches a point where it faces strong social resistance in the range of $ 9,500 to $ 9,900, and the US stock market is still experiencing the financial consequences of coronavirus.
Given the cyclical nature of the bit, technical analysts are moving towards the correction of bitcoins after the expected block is halved by May 12.
Not all bearish for BTC, especially in the long run
According to market analyst Welt Holger Zshaepits, the two previous bitcoin breakthroughs led to an increase of 10,000% and 2500% for BTC.
Bitcoin is a deflationary coin because its supply of 21 million bitcoins is fixed and cannot be changed. Thus, any event that significantly affects the provision of BTC will have a profound effect on the price of the cryptocurrency.
Half reduces the frequency of the emergence of a new BTC on the market, as Bitcoin is moving in the direction of satisfying its 21 millionth offer. As the number approaches, it is theoretically expected that the price of Bitcoin will increase and destroy previous cycles.
Feelings about risky stocks and assets are still cautious due to the uncertainty expressed by large investors such as Buffett. However, in the long run, data indicate that Bitcoin is likely to continue.
Longtime investors like Max Kaiser don't like Buffett's recent investment decisions and his views on bitcoin, but he added that BTC has surpassed most of its assets, including gold, in the past two months.