Warren Buffett’s Big Stock Dump is a bad signal for Bitcoin (BTC) and risk assets, according to analyst Nicholas Merten

A popular crypto analyst is warning that investment legend Warren Buffett’s massive stock sell-off bodes ill for Bitcoin (BTC) and similar risk assets.

In a new video update, DataDash host Nicholas Merten tells his 511,000 YouTube subscribers that Buffett’s billion-dollar stock dump is likely a bearish signal for financial markets.

According to Merten, Buffett’s stock sale is another signal that Bitcoin’s recent rally is likely to lose momentum. He also says that the king crypto’s recent rally lacks the price patterns that have fueled previous bull market cycles, and he doesn’t see anything that would catalyze a move higher in the short-term either.

The massive bull run that some people had predicted in response to the US banking crisis has not materialized for Bitcoin, according to Merten.

“Look what the price is doing right now. Looks relatively choppy, inconsistent. Certainly not a bitcoin bank run as everyone is selling us. So if there isn’t a major rush for bitcoin during this time when people are switching to other banks, chasing better yields, and losing a bit of confidence in the financial system, then in this heyday, bitcoin may be that asset and we’re not seeing it it in price what will be the narration? What will drive up the price of bitcoin?”

Merten says Buffett’s exit from the stock is a sign the investment legend doesn’t think markets will go up any time soon after the Federal Reserve made a series of rate hikes to try to lower inflation and there’s a looming recession .

“[There are] few new narratives coming out that could actually sustain in the long term [Bitcoin] Uptrend during a contraction phase. And not to mention a time when there’s a lot of de-risking in finance.

Let’s take a look at investing titan Warren Buffett. Warren Buffett usually buys when there’s blood on the streets. He usually buys early at the start of a new cycle. Warren Buffett, Berkshire Hathaway as a whole, his company, is sitting on a huge pile of cash, one of the biggest piles it’s ever had. And you would think they were going on a shopping spree. No, in the last quarter, Berkshire Hathaway sold billions of dollars in stock.”

Bitcoin is trading at $27,485 at the time of writing, down 1.4% over the past 24 hours.

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