Warren Buffett Upgrades Bitcoin From “Rat Poison” to a “Gambling Token” as Ethereum Prepares To Undergo a Major Change

As a major portion of the US banking edifice threatens to come tumbling down amid the Federal Reserve’s relentless interest rate hikes, Bitcoin’s comparative resilience – even if aided by the Fed’s newly revived liquidity spigots – is now forcing even die-hard antagonists to cede ground.

To wit, Berkshire Hathaway’s octogenarian chairman, Warren Buffett, has now upgraded Bitcoin from “rat poison” to a “gambling token.” The famous investor has repeatedly vowed never to dabble in cryptocurrencies.

Nonetheless, as we noted in a previous post, Bitcoin’s stellar 80 percent gains so far this year recently propelled the cryptocurrency out of its macro downtrend and on the cusp of clinching its coveted macro uptrend.

On a shorter time frame, as exhaustion sets in, calls for a pullback are growing again.

Notice the lower highs in the chart above. This is a classic momentum exhaustion pattern.

According to Rekt Capital, Bitcoin is currently retesting its “higher high” resistance.

We’ve added our own context in the chart above to Rekt Capital’s analysis. Do note that Bitcoin currently remains confined in an up-trending channel. This setup appears ripe for a healthy pullback.

Do note, however, that Bitcoin’s monthly RSI has quite a lot of room to rise again. This bodes well for the cryptocurrency’s near-term prospects.

Of course, Ethereum’s Shapella (Shanghai + Capella) upgrade today remains the center of attention in the crypto world, even if Buffett redirected the spotlight toward Bitcoin momentarily. Starting today, users will be able to withdraw the rewards earned from staking Ethereum. Additionally, all staking nodes will be able to withdraw their staked capital of 32 Ether coins. However, this process is expected to proceed at a snail’s pace, given the backlog involved.

By allowing free movement of staked coins, the Shapella upgrade is expected to strengthen Ethereum’s ecosystem in the long run. However, in the short run, it might lead to elevated selling pressure.

As per Glassnode’s report, staking rewards of 100,000 Ether coins ($190 million) will likely be withdrawn and sold on a cumulative basis. Moreover, 70,000 staked Ether coins ($133 million) will likely be sold in the aftermath of the upgrade. The report goes on to note:

“Even in the extreme case where the maximum amount of rewards and stake are withdrawn and sold, the sell-side volume still falls within the range of the average weekly exchange inflow volume. Therefore, we conclude that even the most extreme case will have an acceptable impact on the price of ETH.”

What do you think remains in store for Bitcoin and Ethereum in the weeks ahead? Let us know your thoughts in the comments section below.