The Big Short’s Michael Burry Has Serious Warning For Crypto Investors
Michael Burry, who has been ahead of the curve in the stock market for years, has come out with some worrying thoughts on cryptocurrencies.
Despite having a successful career in the stock market, Burry is probably best known for being portrayed by Christian Bale in The Big Short. The film chronicled how the likes of Burry managed to predict the devastating market crash in 2008.
Burry has continued to track the stock market since the crash, but it seems he has a stark warning for those who are investing in cryptocurrencies.
Burry reactivated his Twitter account after logging off indefinitely in April to deliver some disheartening news for cryptocurrency investors. The investor noted that the cryptocurrency market is likely to plunge downward as more people invest.
The hedge fund manager and investor wrote:
All hype/speculation is doing is drawing in retail before the mother of all crashes. When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries.
On top of this initial warning, Burry further explained the dangers of huge amounts of people investing, ‘#FOMO Parabolas don’t resolve sideways.’
The investor concluded the now-deleted tweets:
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.
Many will be aware of the risks of investing in cryptocurrency, with recent weeks showing the volatile nature of de-centralised currencies. In fact, Dogecoin has seemingly seen its value change as a result of tweets from Elon Musk, with those who invested in the currency a few weeks ago potentially losing a significant sum.
On top of the fact that the market is visibly hard to predict, Burry has made some other accurate predictions in recent months. The investor led the way for the GameStop stock spike. After buying stock in the retailer in 2019, Burry wrote letters to investors to bet on the stock long-term ahead of the public-funded attack on short-stock investors.
Of course, Burry isn’t clairvoyant and could be wrong about this cryptocurrency prediction. However, given that many have seen the market endure a couple of dips in recent months and Burry’s logical thoughts on fear of missing out on investments, some will definitely be worried.
With this in mind, many will give Burry’s words more credence than they did in 2008.
If you have a story you want to tell, send it to UNILAD via [email protected]