Dr Michael Burry warns mother of all crashes is coming for crypto
When Scion Asset Management founder and renowned investor of The big court fame – Dr Michael Burry – is right, he is right in a tremendous way that is changing the landscape. The Good Doctor was right about the money when it came to the real estate crash that preceded the 2007-08 global financial crisis, jumped on the GameStop (NYSE: GME) short band long before it got cold. ; and in his latest prediction, Michael Burry sounded the alarm bells about the upcoming “mother of all crashes” for cryptocurrencies and stock memes.
“Everything the hype / speculation does attracts retail [investors] before the mother of all accidents ”, tweets Burry on the worst-kept secret of modern investing (that is, we are indeed living in the days of a bubble).
“When crypto drops by trillions or stocks of memes drop by tens of billions, #MainStreet losses will approach the size of countries.”
The man himself also had some thoughts on the crypto cult, which has seen many self-proclaimed investors borrow capital in extremely reckless ways just to gain more volume in pursuit of gains far beyond their means. .
“The problem with #Crypto, like with most things, is leverage. If you don’t know what crypto leverage is, you don’t know anything about crypto.
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Before that, Burry’s other major prediction for 2021 involves Tesla (NASDAQ: TSLA) stock falling 90% this year. Citing the company’s “current ridiculous price” with comparisons to the housing bubble before urging the general population to “sell this #teslasouffle”, last month it was revealed that Scion Asset Management actually held options bearish sell-offs on 800,100 Tesla shares valued at around US $ 534 million / A $ 680 million (as of March 31).
“$ TSLA below $ 100 / share by the end of the year won’t crash the system,” Burry tweets.
“There is no reflexivity in such a fall. But that would trigger the end of an era for some type of investment.
“My last Big Short just got bigger and bigger and BIGGER too… Enjoy it while it lasts.”
After offering his two cents on the upcoming crypto and meme stock crashes, Dr Michael Burry again deactivated his Twitter account, which is under the handle @Cassandra – a reference to the priestess from cursed Greek mythology to share true prophecies but never to be believed.
No doubt he’ll come back when the world needs him as the goddamn Avatar of finance.
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