As the US dollar keeps plunging, as Bitcoin pioneer Max Keiser exposed that the Berkshire Hathaway CEO, Warren Buffett had moved his assets out of the US market, an investment strategy that the Keiser Report host says will set Bitcoin’s next wave.
Buffett exits the US$ domain
Warren Buffett has funded in the Japanese market, buying a 5% stake in Japan’s five biggest trading houses. The investment move by Buffett totaled over $6 billion and came when the US dollar keeps dropping. The US Federal Reserve also recently disclosed in a meeting that the central bank is prepared to let inflation rise above the 2% target as a temporary relief measure. Since then, the US dollar has dipped and is not showing signs of recovery anytime soon, a move that Buffett has seemingly forecasted, according to Max Keiser.
Talking about his new venture in the Japanese market, Buffet revealed in a statement shared with Reuters and expressed his investment sentiment:
“The five major trading companies have many joint ventures throughout the world and are likely to have more. I hope that in the future there may be opportunities for mutual benefit.”
Buffett’s departure from the US dollar and into Japanese assets may be a surprise to many market bulls, as trading houses have not been much of an investor favorite. However, ditching the world’s reserve currency should not come as a shock, since Warren Buffett had warned investors previously that the US stock market was on the verge of bubble territory.
This has also been determined by the Buffett Indicator, which divides the Wilshire 5000 Index with the US’s annual gross domestic product (GDP).
The Buffett Indicator foretells that there will be another stock market crash, and market investors such as Jim Rogers have echoed the opinion by pointing to the depreciation of the dollar as a result of mass currency printing by central banks to stimulate economies worldwide during COVID-19.
Buffett believes in gold.
Buffett, who has previously called gold a “non-productive asset,” had also surprised investors by making investment changes and buying a stake in Barrick Gold Corp. The renowned investor has been critical of gold beforehand but has seemingly shifted his views regarding the asset, with gold surging this year by almost 30%.
Buffett investing in gold may mean vital things for the traditional safe-haven asset, as institutional investors will likely follow.
Where does Bitcoin come into this story?
With Buffett stirring his assets out of US markets and the US dollar considerably depreciating with the Federal Reserve mass printing stimulus money, investors have also taken to Bitcoin (BTC) as a hedge investment. Warren Buffett has adamantly said he would not do.
Despite that, with the Buffett Indicator’s stock market predictions, Bitcoin may be heating up for another price run. The digital asset, often coined “digital gold,” had surged past the $12,000 point in July after breaking its resistance level at $11,800 and has been on the radar of many investors, as the US dollar keeps weakening.
Bitcoin expert Max Keiser has publicly declared that the US dollar is getting so weak that even Warren Buffett is getting out, and this move will only pave the way for Bitcoin’s next price run. Keiser tweeted:
“Buffett’s move into Japan, along with his GOLD investment, confirms he’s getting out of $USD BIGLY. $USD is trending lower today, about to break key support. Bitcoin, Gold, and Silver will all make new all-time highs in the near term.”
The Bitcoin price is currently hanging around the $12,000 mark, at the time of writing.