Famous fund manager Michael Burry believes there is still some room for falling down of the crypto market
Although the crypto market has prospered in recent days, the market is still very harsh in principle. It seems it was because of this that Michael Burry, the famous investor and founder of investment firm Scion Asset Management, best known for first predicting the 2008 housing market crash and for the “The Big Short” book and movie, liquidated 95% of its portfolio, leaving only one asset on the balance sheet.
The total AUM for the fund was not disclosed this Q, but on 4/18/22 an AUM of $292M was reported
Is cash officially back?
— Michael Burry Stock Tracker ♟ (@burrytracker) August 15, 2022
“Big Short” Hero Michael Burry Exits All Markets, Is It Sign for Crypto?
Burry has warned the investors before about the possible market collapse and crypto market corrections. Through his investment company Scion Asset Management, Burry recently positioned his portfolio for the upcoming volatility. In a now-deleted tweet from October 2021, Burry said: “I believe that cryptocurrencies are in a bubble.”
With Burry closing almost 100% of his portfolio, it is safe to say that the analyst is betting on a further market reversal, which will affect most cryptocurrencies if it happened. The only stock left in Burry’s portfolio is the GEO Group, which invests in private prisons and mental health facilities in the US, valued at $3.3 million.
In July, Burry said that we are halfway through a bear market and that he expects another plunge yet to come considering the 20% price increase for most digital assets. If the trader’s prediction is correct, we should see a sharp decline in both the digital and traditional asset markets over the next month. Some crypto investors have also predicted a correction as the fundamental signals are diverging with the prices of most assets.
Finally, The Big Short investor did warn that inflation will come in 2022, and he predicted it correctly; however, no one has a crystal ball, and basing investments on someone else’s research always comes with its own risks.
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