Is Warren Buffett’s growing cash stash a bad omen for bitcoin?

The key takeaways:

• Buffett’s rising cash appetite usually precedes stock market crashs.

• Bitcoin is likely to be affected as well by any potential Nasdaq market decline.

Berkshire Hathaway’s cash position will reach $350 Billion by the middle of 2025, when Treasury bills are added to cash. This is a record for the firm and it’s the biggest among US publicly traded firms.

This cash is a good sign for Bitcoin.BTC(whose price nearly doubled within the last year and reached a record of $124,500 by August)?

Buffett takes cash out before stock crash

Berkshire’s cash holdings in 2024–2025—reaching $347.7 billion (50.7% of shareholders’ equity, 28–30% of total assets) in Q1 2025—signal Buffett’s preparation for a potential market downturn.

Buffett increased liquidity in periods of excessive market activity. To put it another way, Buffett has always been afraid of the markets when they were soaring.

He led Berkshire in 1998 to reduce stock exposure and increase cash holdings from $13.1 billion to $23% of assets.

Buffett began to reduce his position in the mid 2000s, when cash reached a peak of $15 billion or 25 percent of assets. Dot-Com bubble burst.

Buffett then built his cash again. In Q1 2005 Berkshire had $46.1 billion in cash and other equivalents, which was 51% shareholder equity. This is the highest amount ever recorded and close to today’s levels.

Cash was still high in 2007, at $44.3 billion or 29% of assets. This is just above the 2007 average. 2008 financial crisis.

Bitcoin risks are increased by a Nasdaq that is overheated

Buffett’s warning is more pertinent today, given the current equity market valuations.

According to Maverick Equity Research, a source of data, the Nasdaq market cap is now 176% the US M2 currency supply. This is a significant increase from the Dot-Com high of 131%. The Kobeissi Letter.

The Nasdaq is now at 129% of the US Gross Domestic Product, almost double the 70% high it reached in 2000. These readings show just how much stock prices outpace the US economy and money supply.

Bitcoin is rising along with the Nasdaq. The correlation for 52 weeks was 0.73. The top cryptocurrency moves most often in the same direction with tech stocks.

Buffett’s record-breaking cash position highlights the risks of equities, and cryptocurrency because Bitcoin is similar to Nasdaq.

Bitcoin isn’t the top: M2 expansion to increase supply?

The rate at which money is created will determine how Buffett’s record cash stash and Nasdaq’s risk play out.

You can also find out more about the following: US M2After a flattening out in 2025, the index that tracks cash and deposit has begun to grow again. According to the, by July 2025 it had risen 4.8% over the previous year to $22.1 trillion. This was its fastest growth since early 2022. FRED data.

In the beginning of this year, it was closer to 2,4%. It shows that things are picking up.

Globally, more than 20 central banks have cut rates in 2025, and forecasts suggest the Federal Reserve may follow with easing that could push annual M2 growth back toward 10–12%, according to economist Daniel Lacalle.

Bitcoin has historically benefited if US politicians are forced to increase the money supply in order to protect equity markets.

Related: Bitcoin price target ‘sits around $170K’ as global M2 supply reaches record high

As global M2 increased, BTC went from $3.800 up to $69,000.

“Global M2 (money supply) has historically led Bitcoin by ~12 weeks,” writes analyst CryptoRodo, adding:

“Every time liquidity re-accelerates, BTC eventually follows.”

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.