Warren Buffett’s Berkshire Hathaway significantly increased its cash holdings to about $350 billion by mid-2025, historically indicating preparations for market downturns. Buffett has a pattern of raising cash during periods of market excess, such as in the late 1990s and mid-2000s. This trend raises concerns about the current state of stocks, especially given that the Nasdaq’s market cap has surpassed previous highs relative to the US M2 money supply and GDP. Bitcoin has also seen substantial gains, with its price nearly doubling to $124,500, moving closely in correlation with Nasdaq stocks. However, analysts suggest that Buffett’s record cash position signals potential risks for Bitcoin, which typically reacts similarly to equity markets. The future of both markets may hinge on money supply growth; recent upticks could point towards increased liquidity, suggesting a possibility for Bitcoin to rise in response. Nonetheless, the situation remains dynamic, with many uncertainties ahead.

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