By
Steve Muchoki
April 19th, 2024
Warren Buffett has changed his mind about gold as an investment, prompting some people to think that he might do the same with BTC. Max Keiser has predicted that the Berkshire Hathaway CEO will panic-buy Bitcoin at $50,000.
It seems that the U.S. dollar is really losing its power. As a matter a fact, if it’s to believe crypto enthusiast and analyst Max Keiser, the U.S. dollar is getting so weak that even Warren Buffett is getting out and Bitcoin (BTC) will see all-time highs.
In his latest prediction for macro, the Keiser cautioned that safe havens would seriously outperform fiat. He also implied that Warren Buffett well knew that this was coming.
Keiser wrote:
“Buffett’s move into Japan, along with his gold investment, confirms he’s getting out of USD bigly. USD is trending lower today, about to break key support. Bitcoin – Gold – Silver Will all make new ATH in the near term.”
He was obviously thinking about Buffett’s earlier announcement that he will be moving into Japanese assets, taking a 5% stake in the country’s five biggest trading houses in a move totaling $6 billion. Let’s not forget Berkshire Hathaway Inc (NYSE: BRK.A) said late Sunday, on Buffett’s 90th birthday, it owned just over 5% of each of Itochu Corp (OTCMKTS: ITOCY), Marubeni Corp (OTCMKTS: MARUY), Mitsubishi Corp (OTCMKTS: MSBHF), Mitsui & Co (OTCMKTS: MITSY), and Sumitomo Corp (OTCMKTS: SSUMY) and said it could increase its stakes to 9.9%.
Berkshire investors welcomed Buffett’s wager, at a time U.S. stock valuations are at their highest since the late 1990s tech bubble, lifted by behemoths such as Apple Inc (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZN), both of which Berkshire invests in.
Bill Smead, chief investment officer at Smead Capital Management, which invests nearly 3% of its assets in Berkshire commented:
“The inflation cocktail is being mixed and Buffett is migrating his investment to where you can create value through inflation. These are companies that will make more money if the price of oil [or] any input goes up.”
BTC to Reach Record Again?
Keiser said that “the five major trading companies have many joint ventures throughout the world and are likely to have more. I hope that in the future there may be opportunities of mutual benefit.”
The announcement came days after the Federal Reserve announced that it would let inflation rise above its 2% target as a temporary measure, and that weighed heavily on the dollar.
After volatility, the USD currency index (DXY) began falling to new lows on Monday, bouncing off its lowest levels in two years. Just for reminder, back in July, when those levels first started to show, Bitcoin saw a price rocketing to $12,500.
Expectations now are that further even more fall in the DXY will produce similar effects.
Will Buffett Turn to BTC?
Buffett, however, is famous for his so-called macro moves, even though he stays as a loyal BTC skeptic. Last week, the so-called “Buffett Indicator” cautioned about a stock market crash, even as large-cap stocks went on rising.
Before that, Anthony Pompliano, co-founder of Morgan Creek Digital, publicly bet that Buffett will eventually decide to buy a Bitcoin after he revealed his move into gold.
At the time, Keiser claimed that the gold frenzy alone could boost investors, helping push BTC/USD to $50,000.
In February this year, Warren Buffett dismissed Bitcoin and other cryptocurrencies as worthless by saying:
“Cryptocurrencies basically have no value. They don’t produce anything. You can’t do anything with it except sell it to somebody else. But then that person’s got the problem.”
“I don’t own any cryptocurrency,” he said. “I never will,” and added that none of Berkshire’s businesses uses Bitcoin, and highlighted its frequent usage for illicit purposes.
“Bitcoin has been used to move around a fair amount of money illegally,” Buffett said going on joking on Bitcoin’s “economic contribution” to society might be reducing demand for suitcases.