Michael Burry, nicknamed “The Big Short”is a well-known hedge fund manager. He is known for the notable predictions he often makes in the financial markets, including cryptos. He notably predicted the real estate crash and the stock market crash of 2008. Between 2021 and this year, Michael Burry made 3 big cryptocurrency predictions.
A massive correction for stocks and bitcoin (BTC)
The first half of 2022 saw the equity and crypto markets decline on the back of macroeconomic factors. Inflation and interest rate hikes got the better of these markets. It turns out that Michael Burry had predicted the same scenario for the second half, based on the decline seen in the first six months of 2022.
Currently, we don’t have not yet observed any significant recovery for the crypto flagship and actions. However, there have been signs of slowing inflation. Admittedly, there was a short-term rally for bitcoin (BTC) following the decline in inflation in the United States. But, we retain that the gains of BTC were slight in this second half of 2022.
Cryptos will be abandoned in favor of gold
Michael Burry did a post, later deleted, on Twitter 1 month ago, November 15, 2022. His tweet said that the value of gold could increase in this time of scandals in the crypto sector. As for the scandals, the hedge fund manager was referring in particular to the collapse of the Terra ecosystem. There is also the Celsius Network bankruptcy filing and the FTX crypto exchange crash.
According to Burry, there will undoubtedly be a contagion in the crypto markets, which will make digital assets less attractive. That being said, right now the bear market is getting stronger as gold is showing a remarkable performance.
Biggest crash in history?
At the peak of 2021’s crypto bull market, hedge fund manager Michael Burry had predicted a colossal crash in the equity and crypto markets. He had indicated that speculation only attracted retail investors “before the mother of all crashes“. According to him, this big crash will be characterized by trillions in losses for the crypto. Considering the current situation, we can say that Burry’s prediction came true in 2022.
In 2022the crypto market has checked in a loss of around $2 trillion in capitalization. According to hedge fund manager Burrythe problem of the new industry is leverage.
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