Bitcoin News Today: Buffett's Cash Hoard Suggests Market Crossroads Amid Bitcoin's High Stakes

Warren Buffett’s Berkshire Hathaway has amassed an unprecedented cash reserve, reaching approximately $350 billion as of mid-2025, the largest among U.S. public firms. This increase in liquidity—comprising Treasury bills and cash—marks a historically significant shift in the company’s investment strategy, raising concerns about potential market instability [1]. The cash holdings now represent roughly 50.7% of shareholders’ equity and 28–30% of total assets as of Q1 2025. Buffett’s approach of accumulating cash during periods of perceived market exuberance has previously preceded major downturns, including the dot-com bubble in 2000 and the 2008 financial crisis [1].

Buffett’s strategy appears to reflect a cautious stance as equity valuations reach historically high levels. The Nasdaq Composite’s market capitalization has surged to 176% of the U.S. M2 money supply, well above the 131% peak during the dot-com era, according to research from Maverick Equity Research. Additionally, the Nasdaq now stands at 129% of U.S. GDP, nearly double its 2000 level. These metrics underscore the extent to which stock prices have outpaced both economic output and liquidity, raising concerns about overvaluation [1].

Bitcoin, which has historically moved in tandem with the Nasdaq, may face similar risks. The top cryptocurrency has seen its price nearly double over the past year, reaching a record high of $124,500 in August 2025. With a 52-week correlation of 0.73 between Bitcoin and the Nasdaq, many analysts view Buffett’s growing cash reserves as a warning sign for both equities and crypto. If the Nasdaq experiences a correction, Bitcoin is likely to follow a similar trajectory [1].

However, the ultimate trajectory of Bitcoin may depend on the pace of monetary expansion. The U.S. M2 money supply has begun to accelerate again after a period of stagnation, rising 4.8% year-over-year to $22.1 trillion by July 2025, the fastest growth rate since early 2022. With over 20 central banks having cut interest rates in 2025 and economist Daniel Lacalle forecasting potential easing by the Federal Reserve, M2 growth could return to a range of 10–12%. Historically, Bitcoin has benefited from such liquidity infusions, as evidenced by its surge from $3,800 to $69,000 following the 2020 monetary expansion [1].

Analysts also note that global M2 supply has historically led Bitcoin price movements by approximately 12 weeks. As liquidity accelerates, Bitcoin is expected to respond accordingly. The correlation between monetary policy and crypto performance highlights the importance of central bank actions in shaping both traditional and digital markets. While Buffett’s caution may indicate a coming correction, the potential for monetary easing offers a counterbalance that could support asset prices, including Bitcoin, if implemented effectively [1].

Source: [1] Is Warren Buffett's growing cash pile a bad sign for stocks ... (https://cointelegraph.com/news/is-warren-buffett-growing-cash-pile-bad-sign-stocks-bitcoin)