Bitcoin Could Collapse Another 50%, Says Michael “Big Short” Burry


Michael Perry, a former hedge fund manager, made another bearish prediction for Bitcoin and traditional stocks. Famous for his short position preceding the US housing market crash, and one of the periods in the world’s modern economic history, Bury believes more pain will come on the price of Bitcoin in the future.

Related reading | Shiba Inu (SHIB) lights up green in a crimson pond – who’s buying?

Currently, Bitcoin is trading at $19,400 with a loss of 8% in the past seven days. The cryptocurrency has been moving sideways around its all-time highs of 2017, $20,000, but the market has taken another turn to the downside and may retest yearly lows near $17,000.

Bitcoin BTC BTCUSD
BTC price trends are down on the 4-hour chart. source: BTCUSD TradingView

This could be a fraction of future losses, according to Barry. The former hedge fund manager was bearish on BTC, and the cryptocurrency appears to be trading north of $60,000, in October 2021. Via his Twitter account, Burry Requested Tips for his followers on how to sell cryptocurrency:

Well, I have not done this before, how to short a cryptocurrency. Should you get a loan? Is there a short discount? Can the situation be pressed and summoned? In such volatile situations, I am inclined to think that it is better not to be short (…).

Soon, the price of BTC reached an all-time high which would have resulted in huge profits for Burry, if he had been able to open a short position. In this case, it may continue to wait for profit taking, according to the most recent predictionConventional stocks and BTC could face more downsides on the back of a poor earnings season:

Adjusted for inflation, the first halving of the S&P 500 in 2022 fell by 25-26%, the Nasdaq fell by 34-35%, and the price of Bitcoin fell by 64-65%. That was multiple pressure. After that, squeeze profits. So, maybe there’s halfway.

Some good news about Bitcoin in the short term

Two experts recently shared potential bullish catalysts for bitcoin, at least for a short period of time. Jurrien Timmer, Macro director of investment firm Fidelity, believes stocks have a chance to recover from the recent crash.

However, Timmer believes the no-risk season could be extended further as bond yields head higher. In the upcoming earnings season for publicly traded companies in the US, one can provide more clues as to what’s next for the market, including Bitcoin which has shown correlation with traditional stocks.

On the other hand, Bloomberg Intelligence Mike McGlone expected a decline in commodity prices. If these assets are trending lower, the Fed could slow down its economic tightening and provide riskier assets like bitcoin with some room to rest.

Rising commodities often indicate high inflation, and they suggest the opposite when they are headed to the downside which may indicate that the US financial institution may succeed in bringing down inflation, which is currently their clear number one priority. McGlone He said:

Commodities aren’t complicated, 1H was high: When the 2022 date is written, there’s a good chance the 1H pump will run in commodity prices like similar surges in the past, with mutual dumping.

Timer and other experts believe that negative news about the economy, talk of an economic recession, and the ongoing market meltdown may allow the Federal Reserve to become more pessimistic about its monetary policy. The market reacted to the downside as a result of the Fed, but some believe that this will not be enough to stop inflation.

Related reading | Ethereum (ETH) Curves towards $1,000 as Doubt Fills Crypto Markets

Federal Reserve Chairman Jerome Powell has expressed Doubts about a less aggressive monetary policy. In an interview with the Wall Street Journal, Powell said lowering inflation would bring “some pain” to global markets. Does this mean that Perry will be right as in 2008?





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