Things aren’t looking good for bitcoin bulls, according to famous “big short” investor Michael Burry, who recently warned that the “mother of all crashes” is coming and crypto and meme stocks will plummet.
Burry has been outspoken about bitcoin, whose price has been driven down as of late due to several factors including too much speculation. Bitcoin was trading at $34,772.97, up 3.55 percent from yesterday at the time of this writing.
A June 23 tweet by Burry made many crypto supporters and investors nervous when he warned that bitcoin bulls are trapped.
“Trapped bulls often fall for the latest support,” he tweeted.
dashdaryl @dashdaryl1 replied, “You’re scaring me bro everytime you tweet”
Others said Burry is wrong. “Such a shame, you will be reminded as the guy who did the Big Short but didn’t jump on board and miss the biggest innovation of the 4th industrial revolution $BTC,” Max Crypto Headroom @maxcryptohead tweeted.
In a tweet that has since been removed, Burry tweeted, “The problem with #Crypto, as in most things, is the leverage. If you don’t know how much leverage is in crypto, you don’t know anything about crypto.”
Stephan Livera @stephanlivera tweeted at Burry, “I don’t think you understand what you’re looking at. There’s a broader underlying shift going on, a movement of people who want non-govt money.”
Burry founded the hedge fund Scion Capital, which he ran from 2000 until 2008 when he closed the firm to focus on his own personal investments.
He has attracted a cult following since he predicted the housing-market crash that precipitated the global financial crisis. His billion-dollar bet against the bubble was chronicled in the book and the movie “The Big Short,” Business Insider reported.
“All hype/speculation is doing is drawing in retail before the mother of all crashes,” Burry recenty said in a tweet that has since been removed. “When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries.”
Listen to GHOGH with Jamarlin Martin | Episode 74: Jamarlin Martin Jamarlin returns for a new season of the GHOGH podcast to discuss Bitcoin, bubbles, and Biden. He talks about the risk factors for Bitcoin as an investment asset including origin risk, speculative market structure, regulatory, and environment. Are broader financial markets in a massive speculative bubble?