A widely followed crypto analyst warns that investment legend Warren Buffett’s massive stock sell-off does not bode well for Bitcoin (BTC) and similar high-risk assets.
In a new video update, Nicholas Merten, the host of DataDash, tells his 511,000 YouTube subscribers that Buffett is dumping billions of dollars in stocks is likely a bearish signal for the financial markets.
According to Merten, Buffet’s stock sell-off is another signal that Bitcoin’s latest rally is likely to lose momentum. He also says that the recent king crypto rally lacks the price patterns that initiated previous bull market cycles, and he also sees nothing in the near term that could catalyze a move to the upside.
The massive bull run that some people predicted would come in response to the US banking crisis has not materialized for Bitcoin, according to Merten.
“Look what the price is doing now. Looks relatively choppy, inconsistent. Certainly not a Bitcoin bank run, because everyone is selling us. So if there isn’t a big flight to Bitcoin in this day and age where people are switching to other banks, chasing better returns, losing a little faith in the financial system then Bitcoin in this prime time might be that asset and we don’t if you put it in see the price, what will the story be? What will make the price of Bitcoin higher?”
Merten says Buffett’s stock dump is a sign that the investment legend doesn’t believe markets are going up quickly after the Federal Reserve pushed through a series of rate hikes to reduce inflation and a looming recession.
“[There are] little new stories coming out that can really support a long run [Bitcoin] uptrend during a contraction period. And not to forget in a period in which many risks are taken in the financial space.
Let’s take a look at the titan of investing in Warren Buffett. Warren Buffett usually buys when there’s blood in the streets. He usually buys early during the start of a new cycle. Warren Buffet, Berkshire Hathaway as a whole, his company, sits on a huge pile of money, one of the biggest piles it’s ever had. And you would think they are going on a bargain hunt. No, Berkshire Hathaway sold billions in stock in the last quarter.”
Bitcoin is trading at $27,485 at the time of writing, down 1.4% in the past 24 hours.
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