The ‘Big Short’ figure warns of a crash in the cryptocurrency market
Investor Michael Burry, who predicted the 2007 mortgage crisis, warned followers of a crash in the cryptocurrency market. At the time of writing, the tweet had been deleted.
— Michael Burry Archive (@BurryArchive) June 17, 2021
“All the noise and speculation do nothing but attract retail traders before the mother of all crashes. Parabolas will not pass by unscathed. When cryptocurrencies fall from trillions, or meme stocks fall from billions, losses for retail investors will reach the size of countries. History hasn’t changed,” wrote Burry.
The investor also noted that the problem with the digital asset market lies in excessive leverage.
“If you don’t know how large the leverage in cryptocurrencies is, you don’t know anything about cryptocurrencies,” he emphasized.
— Michael Burry Archive (@BurryArchive) June 17, 2021
Earlier, Burry warned that the market had inflated “the biggest bubble in history.” In his post he used the hashtag FlyingPigs360, which, according to Business Insider, may be a nod to the adage: “Bulls make money, bears make money, but pigs get slaughtered.”
— Michael Burry Archive (@BurryArchive) June 15, 2021
Burry was among the first to predict the collapse of the U.S. mortgage market. He bet the entire capital of his hedge fund Scion Capital against mortgage-backed securities (CDOs) and managed to profit from the crisis.
In 2015, based on the book by American author and journalist Michael Lewis, which recounts those days, the film The Big Short was released. Christian Bale played Burry.
On June 21, 2021, the price of the first cryptocurrency fell below $34,000, and Ethereum fell below $2,000.
As noted in February, Burry said governments would stoke inflation and begin to suppress gold and Bitcoin as competitors.
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