It was a volatile weekend at for. On Friday night, it fell sharply to $37,425 (in accordance with the sharp fall in the US stock markets and in particular Friday afternoon’s ). However, it rebounded on Saturday and Sunday and topped out at just over $39,000 on Sunday.
The highlight of the news was Warren Buffett’s and Charlie Mungers’ speech at Berkshire Hathaway (NYSE:) annual shareholder meeting, Saturday. They spoke about Bitcoin.
Charlie Munger and Warren Buffett are both again critical of Bitcoin
The Oracle of Omaha, who is famously quoted as saying that bitcoin was “probably rat poison squared”, has now launched an anti-bitcoin explanation.
“Whether it goes up, down, in five, ten, or a decade, I don’t know. It doesn’t produce anything, that is the only thing I know. It has magic and many people associate magic with it.
Buffett gave some examples. For a 1% stake in all US farmland, he would pay $25Billion. He would also pay $25billion for a 1% stake in all apartment buildings in the US. He said, “I’ll write a check today.”
He explained that bitcoin buying is possible by following these steps:
“Now, tell me, you have all the Bitcoins in the world, and you offer them to you for $25. What would you do with them? It would be a good idea to give it back to me. It has nothing to lose.
He said that unlike bitcoin, ‘flats can produce rent, and farms will produce foods,’
Charlie Munger wasn’t more tender than that, declaring:
“In my life, it is important to avoid bad things and to not make myself look bad compared with others – bitcoin does all three.”
Then he elaborated, “First, it is stupid because it is still likely that it will go to zero.” It is evil because it weakens the Federal Reserve System… thirdly, it makes our country look stupid compared to the Chinese Communist leader. He was intelligent enough to ban Bitcoin in China.
These statements didn’t seem to have any impact on bitcoin’s price.
Bitcoin’s technical profile is still bearish
A look at daily data from a chart perspective shows that bitcoin’s steady rise over the weekend did not improve its bearish profile.
It is still below key obstacles such as a downtrend line that has been visible since May. This would be the psychological threshold of $40,000 and the 100-day moving mean at $40,000.
However, bitcoin used support from the $37.500 area to rebound on Saturday, confirming its importance and helping limit bitcoin’s losses.