Investor Michael Burry, who predicted the 2007 mortgage crisis, admitted that the current market situation is the middle of a bearish 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 BC (@michaeljburry) June 30, 2022
The investor, who became the prototype of the hero of the movie “The Big Short”, believes that the first cryptocurrency can 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%. It was multiple compression. Then there is the decline in income. So maybe halfway through,” Burry wrote.
Popular on Twitter, a DeFi researcher under the pseudonym FatManTerra commented pessimistically on his post:
“Some things are better left unsaid. I do not recommend more stories like this for the sake of 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 one of the first to predict the collapse of the US mortgage market. He bet all the money of the hedge fund he founded, Scion Capital, against mortgage bonds. CDO and managed to capitalize on the crisis.
In 2015, based on the book by American writer and journalist Michael Lewis, which describes the events of those days, the film “The Big Short” was shot. The role of Burry in it was played by Christian Bale.
Recall that Arcane Research researchers compared the drawdowns of the first cryptocurrency in past market cycles. In their opinion, the potential for a decrease in the price of bitcoin remains until the level of $10,350.
Deutsche Bank strategists believe that cryptocurrency quotes may rise to $28,000 by the end of the year amid the recovery of the Nasdaq 100 and S&P 500 indices.
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