Berkshire Hathaway, the $ 503 billion conglomerate led by Warren Buffett, sold Goldman Sachs to a Canadian gold company, Barrick Gold. Max Keizer, the founder of Heisenberg Capital and an early investor of Bitcoin, says it may help to cap BTC at $ 50,000.
The quarterly submission from Berkshire Hathaway shareholder shows that Buffett is cutting his position on most major banks, Fortune reported on August 15. The company sold a substantial portion of its shares in JPMorgan Chase, Wells Fargo and PNG.
What Buffett’s decision to take a golden position in banking shows about Bitcoin
Buffett’s decision to completely close Berkshire’s position on Goldman Sachs follows the latest highest quarterly trading revenue of $ 13.3 billion. It suggests that Buffett is not comfortable betting big on the banking sector in the long run.
Instead, Buffett bought a single stake in Barrick Gold, whose stake reflected that of gold for most of 2020. The company is a Canada-based gold mining company, which recorded a 45% increase year-to-date. Following Berkshire’s investment, the stock traded up 8.11% after hours.
Max Keizer, a coveted Bitcoin investor who has invested in companies like Kraken and Bitfinex, believes that Buffett’s gold investment could benefit. He said the positive sentiment towards gold implies a higher rating for Bitcoin, which some consider “digital gold.” Emperor sei:
“Global $ 100 trillion fund management biz is less than 1% invested in Gold. With Buffett now moving to Gold. Expect global allocation of 5% AU min. Implies $ 5,000 Gold. Expect a 1% BTC worldwide allocation ($ 1 trillion). This implies $ 50,000 for Bitcoin expects PTJ ups to be up to 10%. ”
The weekly price card of Bitcoin. Source: TradingView.com
Former L / S stock portfolio manager and founder of Ikigai Fund Travis Kling weighed similar sentiment. Referring to Buffett’s skeptical statement in 1998 about gold that said it had no use, Kling sei:
“Today it was announced that Berkshire Hathaway has just bought its first gold stock ever. The reasons are self-evident at this point. Just wondering if the next few years will be for Bitcoin, this was Buffett on gold in 1998. “
BTC has shown some correlation with the precious metal so far
Although Bitcoin has outperformed gold since April, the price trend between gold and BTC has shown some correlation. Data from Skew show that the two capacities in tandem have increased in the past four months.
The correlation between Bitcoin and gold. Source: Skew.com
The simultaneous rally of Bitcoin and gold since the global market crash in late March hints that more investors are starting to consider BTC as a store of value.
Most recently, MicroStrategy, a $ 1.4 billion intelligence conglomerate, bought $ 250 million worth of Bitcoin. The company said BTC would act as the company’s primary treasury ban, recognizing Bitcoin as a store of value and a potentially safe haven.
