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Berkshire Hathaway’s Warren Buffett made it clear over the weekend that he has no interest in investing in the world’s largest cryptocurrency.
Dreamstime
Bitcoin
traded higher Monday and other cryptocurrencies rose in a rebound from last week’s action that saw most digital assets tumble along with other risk-sensitive assets such as technology stocks.
Bitcoin has risen 2.1% over the past 24 hours to $38,794, according to CoinDesk. It fell about 0.4% last week and has declined 15.8% in 2022.
Ether,
the token underpinning the Ethereum blockchain network, rose 1.5% to $2,839 on Monday. Ether has fallen 22.8% this year.
Bitcoin and Ether remain well off all-time highs of $68,990 and $4,865, respectively, reached early last November.
Expectations for more aggressive monetary policy from the Federal Reserve have sunk technology stocks, with the tech-heavy
Nasdaq
falling 4.2% on Friday and 13.3% in April. Nasdaq futures signaled a 0.5% higher start for the index on Monday.
The U.S. central bank’s Federal Open Market Committee meets this week and is expected on Wednesday to announce it will be raising rates by 50 basis points, which would be the largest increase since 2000. It also is expected to approve a reduction of its balance sheet.
Those “surging Fed rate hike expectations triggered a bloodbath for tech stocks and risky assets,” said Edward Moya, a senior market analyst at Oanda.
Moya said Bitcoin’s fundamentals have started to weaken as “crypto retail and institutional interest” begins to wane.
“Now that the $40,000 level seems like solid resistance for Bitcoin, crypto traders are anticipating a consolidation that could send prices towards the $37,5000 level,” the analyst added.
Berkshire Hathaway
’s
Warren Buffett made clear Saturday that he has no interest in Bitcoin.
The billionaire investor told shareholders at the company’s annual shareholders meeting that he remains skeptical of the world’s largest cryptocurrency.
“Whether it goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything,” Buffett said Saturday. “It’s got a magic to it and people have attached magics to lots of things.”
Write to Joe Woelfel at joseph.woelfel@barrons.com
