The Big Short hero predicted further Bitcoin price decline

The investor Michael Burry, who predicted the 2007 mortgage crisis, conceded that the current market situation is the midpoint of a bear cycle for Bitcoin.

Adjusted for inflation, 2022 first half S&P 500 down 25-26%, and Nasdaq down 34-35%, Bitcoin down 64-65%.
That was multiple compression. Next up, earnings compression. So, maybe halfway there.

— Cassandra B.C. (@michaeljburry) June 30, 2022

The investor who provided the prototype for the film ‘The Big Short’ believes that Bitcoin could continue to fall.

“Adjusted for inflation, in the first half of the year the S&P 500 fell by 25–26%, Nasdaq by 34–35%, Bitcoin by 64–65%. That was multiple compression. Next came earnings compression. So maybe, halfway there,” wrote Burry.

A popular Twitter DeFi researcher using the pseudonym FatManTerra commented on his post with pessimism:

“Some things are better left unsaid. I do not recommend more stories like these, for the sake of the people, our industry (and your business).”

somethings are better left unsaid. Recommend no more news like these, for the sake of the people, our industry (and your business).

— FatMan (@FatManTerra) June 30, 2022

Regarding Burry’s business, users reminded that the investor specializes in short positions. In October 2021 he became interested in the possibility of shorting cryptocurrencies.

Burry was among the first to predict the collapse of the US mortgage market. He bet the entire funds of his hedge fund Scion Capital against mortgage-backed CDOs and managed to profit from the crisis.

In 2015, the film based on American writer and journalist Michael Lewis’s book recounting those days, ‘The Big Short,’ was released. Christian Bale played Burry.

Arcane Research notes that Bitcoin’s drawdowns in past market cycles remain at the $10,350 mark.

Deutsche Bank strategists say that cryptocurrency prices could rise to $28,000 by year-end on the back of a recovery in the Nasdaq 100 and the S&P 500.

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