Warren Buffett’s big stock dump is a bad signal for Bitcoin (BTC) and risk assets, according to analyst Nicholas Merten

A widely followed crypto analyst is warning that investment legend Warren Buffett’s massive sell-off of stocks does not bode well for Bitcoin (BTC) and similar risk assets.

In a new video update, DataDash host Nicholas Merten tells his 511,000 YouTube subscribers that Buffett dumping billions of dollars in stocks is likely a bearish signal for financial markets.

According to Merten, Buffett’s share sale is another signal that Bitcoin’s recent rally is likely to lose steam. He also says the royal crypt’s recent rally lacks the price patterns that have started previous bull market cycles, and he also doesn’t see anything in the near term that could catalyze a move to the upside.

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

“Look at what the price is doing now. Looks relatively choppy, inconsistent. Definitely not a Bitcoin bank run as everyone is selling us. So if there is no major run to Bitcoin during this time where people are switching to different banks, chasing better returns, losing some confidence in the financial system, during this prime time for Bitcoin potentially to be that asset, and we’re not seeing it in the price, what’s going to be the narrative? What’s going to drive Bitcoin’s price higher?

Merten says Buffett’s stock dump is a sign that the investment legend doesn’t think markets are headed to the upside anytime soon, after the Federal Reserve made a series of rate hikes meant to bring down inflation and a looming recession.

“[There are] little new narratives coming out there that can actually sustain a long term [Bitcoin] uptrend in a contraction period. And not to mention in a period where there is a lot of risk in the financial area.

Let’s take a look at the titan of investing Warren Buffett. Warren Buffett usually buys when there is blood in 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 before. And you’d think they were going on a shopping spree. No, during the last quarter, Berkshire Hathaway sold billions in shares.”

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

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