Key takeaways:
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Buffett’s growing cash appetite has a history preceding the stock market crash.
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A potential NASDAQ collapse is likely to pull Bitcoin too.
Warren Buffett’s Berkshire Hathaway raised the cash holders to nearly $ 350 billion in mid -2025, combining bills and cash. That’s a high time for the company and the largest of US public companies.
But what does this cash pile mean for bitcoin (Btc), that the price was almost double the last year with a record of $ 124,500 in August?
Buffett gets cash before the major stock crashing
Berkshire’s cash holdings in 2024–2025 – reaching $ 347.7 billion (50.7% of shareholders equity, 28-30% of total possessions) in Q1 2025 – Buffett preparation for a potential collapse in the market.
The buffett has repeatedly raised liquidity in times of market. Put on differently, he’s scared when everything is greedy.
In 1998, he led Berkshire to cut out stock exposure and lift cash holdings to $ 13.1 billion, about 23% of total ownership.
By mid 2000, the cash that sank near $ 15 billion, or 25% of the assets, before Buffett reduced the position to buy bargains after Dot-com bubble exploded.
Buffett then rebuilt his cash pile. By Q1 2005, the cash and the equivalent of Berkshire reached $ 46.1 billion, equal to 51% of the equity, the highest level at that time and closest to current levels.
Cash remained elevated in 2007 to $ 44.3 billion, about 29% of total possession, just leading to 2008 financial crisis.
Nasdaq’s overwhelming heat increases Bitcoin risks
Buffett’s caution seems to be more relevant to today’s equity values.
NASDAQ market cap has climbed 176% of the US M2 currency supply, which is higher than 131% DOT-COM peak, according to data from Maverick Equity Research sourced by The Kobeissi letter.
Against the US GDP, NASDAQ is now standing at 129%, almost twice as high as 70%. Readings of this record feature how far stock prices exceed both the money supply and the economy.
Bitcoin rose next to Nasdaq, with a 52-week touch of 0.73. This means most of the time, the leading crypto moves in the same direction of tech stocks.
Buffett’s cash position features risks to equities and crypto because bitcoin moves similarly to Nasdaq.
Expanding M2 Supply: The top of Bitcoin is nothing?
However, how Buffett’s cash pile record and NASDAQ’s risks play are ultimately depending on the rate of currency supply growth.
Earlier in the year, growth was closer to 2.4%, showing momentum selective.
Worldwide, more than 20 central banks broke rates in 2025, and forecasts suggest that the Federal Reserve can follow with an emergency that can push the annual M2 growth back to 10-12%, according to the economist Daniel Lacalle.
Historically, Bitcoin stands to benefit if US policies are forced to expand the supply of money to defend equity markets.
Related: Bitcoin’s target price sits around $ 170k ‘while global M2 supply reaches high record
This is what happened at the Post-2020, when the BTC rose from $ 3,800 to $ 69,000 as a global M2 balloon.
“The Global M2 (money supply) has a history that led to Bitcoin for ~ 12 weeks,” Writing Analyst Cryptornery, Adding:
“Each time the liquidity is reeding again, the BTC eventually follows.”
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
