Is Buffett’s Cash Frenzy Predicting Markets’ Near-Death Experience? 😏💸

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Key takeaways:

  • Buffett’s moon-sized stash of cash-oh, it’s just a casual $350 billion-has a habit of whispering “falling sky” before market crashes. 🎭

  • If Nasdaq hits the skid, don’t be surprised if Bitcoin joins the “Oops, we’re crashing” parade. 🎢

Warren Buffett’s legendary “I have all the cash in the world” moment has arrived-mid-2025, Berkshire Hathaway is hoarding roughly $350 billion, whispering sweet nothings to Treasury bills and cash. A few sentences on “all-time high,” a couple of “largest among US public firms”-the usual bragging rights. And oh, what a cozy pile it is.

But here’s the million-dollar question: what does this mountain of cash mean for Bitcoin, which has been enjoying a glamorous record of nearly doubling its price, hitting $124,500 last August? 🤔

Buffett’s bank of gloom: cash before the crash party

Historical patterns are nothing but old friends: Berkshire’s cash stash – attaining a staggering $347.7 billion in early 2025 – screams “I see storm clouds, and I brought rain gear.” Back when he feared the excess, Buffett’s liquidity skyrocketed-it’s like a doctor’s note warning “Beware of the manic crowd.” 🩺

Remember 1998? Buffett slashed stock exposure, hoarding 23% of his assets in cold cash-just the calm before the tech storm. And then, 2000? Cash hit a peak near $15 billion, or 25%, ready to buy bargains post-dot-com crash.

Building up steam again, by 2005, Berkshire’s cash hit a jaw-dropping 51% of shareholder equity-basically a cash buffet. 2007? Still hefty, just before the 2008 crash-because what’s calm in the eye of the storm?

Nasdaq is on steroids, Bitcoin’s next move? 🤹‍♂️

Buffett’s prudence has gained a fresh crown given today’s outrageously lofty valuations. The Nasdaq’s cap soared to 176% of the US M2-more than double dot-com mania-and somehow, it still looks like a toddler with a big ego.

Compared to the US GDP, the Nasdaq is a wild overachiever-standing at 129%, almost double its 2000 record of 70%. So, what does this all mean? Most of the time, Bitcoin is just tech stocks with a shiny hat. With a 0.73 correlation, they’re tight like a duet-most moves in unison, like a band that refuses to break up. 🎼

Yes, Buffett’s cash mountain hints at risks for stocks and cryptos because Bitcoin dances to the Nasdaq’s tune. 🎶

Money growth roulette: Is Bitcoin’s top a mirage? 🎩

The real twist? It’s all about how fast the money supply grows. US M2-liquid riches-started spiking again in 2025 after a snooze fest. July saw a 4.8% annual rise to $22.1 trillion, the fastest since early 2022. Sooner or later, this liquidity rush could make Bitcoin dance even more. 💃

Globally, a band of central banks has already cut rates, and the Fed might follow, easing the way for the M2 to grow at 10-12%-smooth moves for liquidity. And here’s the nugget: history shows Bitcoin’s big jump follows when policymakers flood the markets with cash-think 2020, from $3,800 to $69,000. The crypto’s favorite swimming pool. 🏊‍♂️

Analyst CryptoRodo summed it up: “Global M2 has historically led Bitcoin by about 12 weeks… every liquidity re-spin, BTC eventually comes along for the ride.”

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2025-09-01 16:22