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At 94 years old, American billionaire Warren Buffett stands among the world’s wealthiest individuals, particularly recognized for his expertise in the stock market. He is known for his famous saying: “Be greedy when others are fearful, and fearful when others are greedy.” Recently, Buffett appears to be applying this philosophy to his investment strategy, which has raised concerns in the cryptocurrency realm.
Warren Buffett Sells Stocks
Buffett, who is known for making long-term investments, has been popular among investors for holding certain stocks for over a decade. His recent sales have kept him in the headlines, reinforcing recession fears that cast a shadow over risk markets. By disproportionately increasing his cash assets, Buffett’s stance continues to fuel this atmosphere of fear.
Last week, Berkshire Hathaway sold $229 million worth of Bank of America stock over three trading days. Since July, these sales have totaled $7.2 billion, bringing the total assets in Bank of America down to a level not seen since 2018, at $33.7 billion, as Berkshire’s other stock sales also draw attention.
The company’s cash reserves reached $277 billion, an increase of $88 billion in the second quarter of this year.
Bad News for Cryptocurrencies
Buffett’s Berkshire Hathaway increased the proportion of cash assets to 25%, a level not seen since 2005. Even the cash ratio of 24.5% observed in the second quarter of 2025 was below today’s level. This spike followed a banking crisis in the U.S. In the lead-up to the Great Recession, Buffett maintained strong cash reserves until the end of 2007.
Currently, with dismal data concerning the U.S. economy and labor force, economists struggle to regard interest rate cuts with the necessary gravity due to recession fears. If stocks were to plummet with the first interest rate cut, we would witness a unique repetition of history.
Given that stocks crashed in 2007 and the current conditions mirror that time, what does it mean for cryptocurrencies? Two key points must be acknowledged: First, Bitcoin 
$103,807 has long shared a high correlation with the U.S. stock market rather than gold. Second, cryptocurrencies hold a similar status to technology stocks in the eyes of most investors; thus, a decline in economic activity would likely result in a downturn for cryptocurrencies as well.
