Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Warren Buffett is accelerating his charitable giving as he prepares to transition leadership at Berkshire Hathaway, prompting discussions within the financial community about the true meaning of wealth. Indian fund manager Gurmeet Chadha has echoed this sentiment, advocating for investors to consider the social impact and purpose alongside financial returns.
Buffett’s Philanthropic Legacy
Mr. Buffett, 95, plans to hand over the chief executive role to Greg Abel in January, having recently donated over $1.3 billion worth of Berkshire stock to family foundations. He has also ensured that the majority of his remaining wealth will eventually go to charitable causes through a family-overseen trust, continuing a long-standing commitment to philanthropy.
Chadha’s Investment Philosophy
Drawing inspiration from Buffett, Gurmeet Chadha, CIO of Complete Circle, promotes an investment philosophy that combines performance with purpose. He dedicates a portion of his annual dividends to funding school fees for underprivileged children and commits to hiring at least one person from a disadvantaged background each year.
Chadha emphasizes that financial returns should also yield emotional and social returns, stating that “Your XIRR is not just a number. It has a satisfaction quotient too.” His perspective encourages investors to look beyond short-term metrics and consider the broader impact of wealth creation.
Bitcoin Price Under Pressure
Bitcoin’s price has fallen to approximately $107,000, facing significant downward pressure following the US Federal Reserve’s cautious stance on interest rates and a broader negative market sentiment. Analysts are warning of potential further declines, with some projections indicating a drop to $88,000 if current trends persist.
Federal Reserve’s Impact on Crypto Market
The primary catalyst for Bitcoin’s recent slide is the Federal Reserve’s cautious tone after its latest interest rate decision. Although the Fed reduced rates last week and signaled an end to quantitative tightening by December, Chairman Jerome Powell indicated that another cut in December was not guaranteed, dampening market optimism.
This shift in expectations led to widespread selling across risk assets, including cryptocurrencies. The Crypto Fear and Greed Index remains in the “fear” zone, and nearly $800 million was withdrawn from Bitcoin and Ethereum ETFs last week, signaling institutional pullback.
Long-Term Holders and Global Tensions
Bitcoin’s decline has been intensified by long-term investors taking profits, with Coinglass data showing over 100,000 BTC sold in October, breaking its usual “Uptober” bullish streak. Global economic tensions, including US-China trade disputes and geopolitical risks, are also driving investors towards safer assets.
Key Price Levels and Outlook
According to Coinglass, Bitcoin risks falling to $88,000 if it fails to hold above the $113,000 resistance level, which represents the cost basis for short-term holders. The $88,000 mark aligns with Bitcoin’s realized price, historically a strong support during corrections. A sustained close above $113,000 could, however, invalidate the bearish outlook.
With few major catalysts in November, Bitcoin could trade sideways between $107,500 and $123,000, with volatility expected due to US economic data uncertainty. A negative Bitcoin price premium on Coinbase, observed in late October and early November, further indicates reduced US buying interest and increased selling pressure among retail investors.
