Warren Buffett’s Berkshire Hathaway fund dumped $13.3 billion in stock and increased its cash holding to $2 billion in the first quarter, a signal that was read by the market as a distrust of risky assets.
In turn, the fund channeled $4.4 billion into buying its own shares and $2.9 billion into shares of other publicly traded companies.
It was also reported that the firm holds a significant amount of its cash in short-term treasury bills and bank deposits.
There are market analysts who interpreted these movements as an anticipatory signal to a possible stock market crash. This in the context of the US banking crisis, this week with the collapses of PacWest Bancorp and Western Alliance Bancorp.
And how does this relate to BTC? The growing possibility of a global recession also threatens to put downward pressure on the price of Bitcoin, whose 100-week correlation with the Nasdaq hit its all-time high at around 0.42%.
“If the worst does not happen for risk assets, the price of Bitcoin could lead the falls”McGlone commented.
Markets are awaiting an update on the debt ceiling from a meeting between US President Joe Biden, House Speaker Kevin McCarthy, Republican, and other congressional leaders at the White House later on day.
Fears of a possible default hang over Washington starting June 1 if Congress doesn’t act to resolve the impasse.
Against this backdrop, short-term US Treasury bill yields soared as investors sold bonds due in June. This weighs on the stocks of high-growth companies.
On Wednesday, meanwhile, the expected inflation data will be published. The market estimates that the Labor Department’s consumer price index (CPI) rose 0.4% in April, after rising 0.1% in March. Producer prices, weekly claims for unemployment benefits and consumer confidence will also be published this week.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
