Warren Buffett, the legendary investor and Berkshire Hathaway chairman, said in a CNBC interview this week that his firm purchased roughly $17 billion in U.S. Treasury bills at the latest auction. Is a stock market crash coming, and what might this signal for Bitcoin (BTC)?
Key takeaways:
– Berkshire held about $373 billion in cash or cash equivalents at the end of 2025, more than double its level at the end of 2023.
– Historically, Buffett’s rising cash reserves have often preceded major stock market crashes, a possible negative for Bitcoin given its recent correlation with equities.
Buffett still sees better value in cash than in stocks
Buffett’s message was simple: Berkshire does not view the recent equity pullback as an attractive buying opportunity. The S&P 500 has dropped roughly 5.75% since hitting a record high in January. Buffett said stocks are not “substantially” cheaper after the decline and described this sell-off as “nothing” compared with earlier downturns where markets fell over 50%.
That stance helps explain Berkshire’s Treasury-bill purchase. The company ended 2025 with about $373 billion in cash and equivalents, up from a record $334.2 billion a year earlier and more than double the level at the end of 2023. Buffett, who has famously called Bitcoin “rat poison,” tends to build cash positions ahead of major market downturns. In 1998 he trimmed stock exposure and raised cash holdings to about $13.1 billion (roughly 23% of assets), rising toward $15 billion by 2000 before deploying capital after the dot-com bust.
Bitcoin’s positive correlation with stocks may hurt prices
Since 2020, Bitcoin has often behaved more like a risk asset than a traditional safe haven, moving in step with U.S. equities—particularly the Nasdaq. The 20-week rolling correlation between Bitcoin and U.S. equities was positive at about 0.47 as of midweek. If Buffett’s risk-off stance signals broader investor caution, BTC could come under pressure alongside stocks.
Other headwinds cited for Bitcoin include quantum-security concerns, potential inflationary pressures from war, and nearly 50% odds of a U.S. recession—factors that can sap risk appetite. Berkshire’s portfolio moves also reflect a tilt away from crypto-friendly plays: in Q1 2025 it fully exited Nu Holdings, a crypto-friendly fintech, taking roughly $250 million in profits from the position it built in 2021–2022. Several analysts have warned BTC could fall to as low as $30,000 in 2026.
This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.
