Crypto Market Outlook Bitcoin: Big Guys, Looking for Opportunities?

Author: Joshua Aldio, Business Associate Tokenomy

Years after calling Bitcoin ‘rat poison,’ Warren Buffett just invested $1 billion in a crypto-friendly bank.

Those were once the words of Warren Buffett, the famous investor called the “sage of Omaha” for knowing things before the rest of the market. Now his money is saying otherwise.

Specifically, his company Berkshire Hathaway has bought $1 billion worth of stock in a digital bank that focuses on crypto.

Berkshire Hathaway made its crypto investment public with a SEC filing earlier this week. It revealed that Buffett’s company had purchased $1 billion in shares of Nubank, a digital bank based in Brazil, and the largest of its kind in Latin America.

Nubank is a so-called neobank, a type of bank that operates outside of the rules of the traditional banking system. The digital bank’s investment unit, NuInvest, allows users to put money in a Bitcoin exchange-traded fund (ETF)—tapping a financial space that Berkshire’s leaders have shown little love for.

Berkshire’s chairman and CEO has not refrained in the past from calling cryptocurrency “rat poison” and an unproductive asset that “has no unique value at all.”

Charlie Munger, Buffett’s longtime partner and vice chairman of Berkshire Hathaway, has also hardly been one to shy away from voicing his strong opinions on cryptocurrency. Munger recently stated that he wished cryptocurrency had “never been invented,” and he has even indicated that he would not want any crypto trader marrying into his family.

Munger has a particular distaste for Bitcoin, the most popularly traded cryptocurrency, once calling it “disgusting and contrary to the interests of civilization.” Munger has supported China’s decision to ban Bitcoin trading in the country and has called on the U.S. to take similar measures. 

“The Chinese made the correct decision, which is just to simply ban them,” he once said.

But even though its owners have expressed their personal disdain for cryptocurrencies and the crypto market, Berkshire Hathaway’s latest investment in Nubank is not the first time the conglomerate has dabbled in this market.

Bitcoin Technical Analysis

Bitcoin is forming a reversal pattern called the Inverted Head & Shoulders. The reversal pattern still needs a price confirmation. We are observing the Bitcoin price too see if it breaks the $46,100 price level to confirm the upside price movement, which will then retesting the price at a lower level, before it breaks out again in the future as an initial bullish signal. 

Looking closely, Bitcoin’s price is also forming a potential Double Top ‘M’ Pattern with a confirmation of breaking the $41,000 level where the price will break down to hit the nearest demand area at a lower price level. 

Trading Call : Bitcoin is still in the wait and see situation for any price action confirmation. We can use the sell stop function for the downside set up or buy limit for the upside set up. 

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