Berkshire's Record Cash Reserve Impacts Crypto Market

Warren Buffett's Berkshire Hathaway reported a record cash reserve of $334 billion by the end of 2024, up $145.2 billion from the previous year, signaling a cautious market approach and potential anticipation of economic volatility or undervalued opportunities. This announcement impacted the cryptocurrency market, causing declines in Bitcoin and Ethereum prices and increasing trading volumes as investors reassessed risk. Berkshire's operating earnings rose 71% in the fourth quarter, driven by gains in insurance operations and higher investment income due to improved Treasury Bill yields. Despite no stock repurchases for the second consecutive quarter, Buffett emphasized value investments and fiscal responsibility, highlighting Berkshire's substantial tax contributions. He praised the success of the insurance business, particularly GEICO, and acknowledged that his tenure may soon end with Greg Abel poised to succeed him.