Warren Buffett offloads $13.30 billion in stock sales
Bitcoin (BTC) has had an excellent start to 2023 with a 70% surge in price, which has led many to question whether this bullish trend will continue. Some observers believe that the correlation between BTC and stocks suggests that investors should be prepared for a possible stock market crash. Even American businessman Warren Buffett, who is known for his successful investments in the US economy, has sold $13.30 billion of stock, invested $4.4 billion to buy its own shares and $2.9 billion in shares of other companies, while Berkshire Hathaway has seen an increase in its cash reserves by $2 billion in the first quarter of 2023 to $130.60 billion.
Experts also predict that Bitcoin’s price may be a leading indicator of a potential stock market crash. Mike McGlone, Bloomberg Intelligence analyst, suggests that Bitcoin can accelerate the declines for risky assets and may lead this decline. In the last week, the BTC/USD parity has retreated to $27,350 and experts predict that in a scenario where interest rates are increased, the support at the $27,000 level may be broken. The next critical level is stated to be at $24,600.
Furthermore, the possibility of a global recession due to the increase in banking crises has created additional pressure for Bitcoin, which has a 100-week correlation of 0.42% with the Nasdaq. The Bloomberg survey also expects the consumer price index report announced on May 10 to remain unchanged at around 5%, resulting in more rate hikes.
Finally, this news does not contain investment advice or recommendations, and readers should do their own research before making any decisions.
