updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Michael Burry, the “Big Short” investor recognized for predicting the 2008 financial crisis, has sounded an alarm on Bitcoin price crash. He cautions that Bitcoin’s sharp fall could trigger a “death spiral,” severely impacting Bitcoin treasury companies, gold, silver, and the broader financial markets. Michael Burry Reveals How Bitcoin Price Could Crash Financial Markets? Michael
The post Big Short Michael Burry Issues Dire Warning on Bitcoin Price Crash Risks appeared first on CoinGape.
]]>Bitcoin News: At a time when the crypto market is testing the patience of traders with Bitcoin’s extended sideways movement, American investor Michael Burry just indicated a bear run in the making for the US stock markets. In a latest filing with the US Securities and Exchanges Commission (SEC), Scion Asset Management, the firm associated with Burry, just revealed that it placed bets predicting a decline in major stock indices. Meanwhile, it remains to be seen if such a decline could cause a bullish run for Bitcoin price, similar to the pump it received when the US regional bank crisis erupted earlier in 2023.
Also Read: Ethereum Shines As Staking Hits All Time High, ENS Fees Surges
Earlier, CoinGape reported that a prolonged sideways movement for cryptocurrencies could mean a jump in value. At the same time, optimism continues to rise about a potential approval of Bitcoin ETF filing in the months to come.
According to an SEC filing, Scion Asset Management opened a huge leveraged short position on the US stock indices Nasdaq 100 and the more crypto correlated S&P 500. The filing reportedly showed that the firm placed purchased $740 million worth of Invesco QQQ Trust Series 1 puts and $900 million worth of S&P 500 puts, both put together constituting about 93% of Burry’s total portfolio value. Hence, a big bet in favor of the fall in US stock values could translate into crypto market gains as traders might prefer BTC as a high risk and high reward investment.
Micheal Burry is famous for his prediction of the subprime mortgage crisis that led to the recession in 2008. On the other side, the U.S. central bank, the Federal Reserve, may not increase the interest rate in the September FOMC meeting, according to respondents of the CME FedWatch Tool.
Also Read: Gold vs Silver vs Bitcoin: Robert Kiyosaki Weighs What’s Better At This Point
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto Market News: The US regional banking crisis showed a disparity between the big Wall Street banks and smaller banks in terms of stability. Overall, the collapse of Silicon Valley Bank and Signature Bank had a blanked effect on the U.S. banking stocks, as customers withdrew in fear of further contagion effects. While fear and uncertainty dominated the market sentiment, some investors looked at it as a great buying opportunity. Meanwhile, the crypto market is facing a downturn after the regional banks seem less fragile and the U.S. Fed’s rate hike decision is still under over the next few months.
Also Read: Balaji Predicts US Election 2024 To Be Fought Over Bitcoin
Earlier, CoinGape reported that popular investor Michael Burry bought shares of distressed banks like First Republic Bank, PacWest Bancorp, Western Alliance Bank and New York Community Bancorp. At that time, these stocks were trading at lowest levels, and any significant recovery would have meant healthy gains. The sentiment was also conducive for buying at the low prices as fears over further bank collapses rose.
According to an annual shareholder report of Burry shared by Compounding Quality, the big short invested in New York Community Bancorp, Capital One, Wells Fargo, Western Alliance Bancorp, Huntington Bancshares, PacWest and First Republic Bank. Among his other major stocks in his portfolio are JD.com and Alibaba Group which form the highest percentage shares in his portfolio, besides energy stocks Coterra Energy and Devon Energy, the report said. He also reportedly bought the shares of healthcare and insurance company Cigna Group.
In the wake of the recent US banking crisis, Burry predicted yet another market bottom scenario in March 2023, similar to his shorting the 2007 mortgage bond market.
Also Read: XRP News: SEC Could Still Win Ripple Lawsuit Says Former Ripple Executive
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Burry increased his stakes in several regional banks in Q1, including NYCB, PacWest, Western Alliance, and First Republic.
Hedge fund manager and investor Michael Burry added new positions in several regional banks during the first quarter, regardless of the sector’s gross underperformance. Burry’s increased investment position in the sector contradicts the prevailing investor convention as many others have fled the scene due to the ongoing banking crisis that has undermined the financial sector. The hedge fund manager’s move underscores his faith in the banking sector amid a tumultuous period.
Following the Silicon Valley Bank collapse in mid-March, Burry opined that the banking crisis would soon end without severe damage. In a now-deleted tweet, the famed ‘Big Short’ investor said, “This crisis could resolve very quickly. I am not seeing true danger here.”
Securities filings released on Monday revealed that Burry’s Scion Asset Management bought $23.4 million of bank stocks in the first quarter. These include 850,000 shares in New York Community Bancorp (NYSE: NYCB) and 250,000 in PacWest Bancorp (NASDAQ: PACW). The asset manager’s positions also include 150,000 shares in First Republic Bank and 125,000 shares in Western Alliance Bancorp (NYSE: WAL). Although Scion’s positions entailed mostly embattled mid-sized institutions, reports state that Burry’s firm added a $4.6 million position in Wells Fargo (NYSE: WFC).
On May 1st, the Federal Deposit Insurance Corporation (FDIC) announced the closure of First Republic, and its subsequent sale to JPMorgan (NYSE: JPM). Scion’s filings did not state whether the asset management firm had sold its positions before the dissolution.
The First Republic collapse marks the most significant bank failure since the 2008 financial crisis.
Scion’s new holdings include $7.6 million in New York Community Bank shares and $4.4 million in Western Alliance. In addition, the asset manager has $2.4 million in PacWest and $2 million in First Republic. Through his firm, Michael Burry also purchased $2 million worth of Ohio-based regional bank Huntington Bank (NASDAQ: HBAN).
Other Burry investments during the first quarter include increased stakes with Chinese e-commerce powerhouses Alibaba (NYSE: BABA) and JD.com (NASDAQ: JD). The ‘Big Short’ investor also invested in Signet Jewelers, Sibanye Stillwater, Zoom Video, and Cigna.
Nevertheless, securities filings disclosed that the celebrated investor liquidated his positions in several other firms during the same period. These include MGM Resorts International Inc (NYSE: MGM), SkyWest Inc (NASDAQ: SKYW), Qurate Retail Group Inc (NASDAQ: QRTEA), and Wolverine World Wide Inc (NYSE: WWW).
In 2010, Burry was featured in the book “The Big Short” by Michael Lewis, which later became a movie adaptation in 2015. The movie covers how the US housing bubble triggered the 2007/08 financial meltdown. Burry rose to fame with his bets against the housing market before the full-blown impact of the financial crisis.
The 2015 “Big Short” movie stars an ensemble cast, including Steve Carell, Ryan Gosling, Brad Pitt, and Christian Bale as Michael Burry.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Michael Burry, who is famous for shorting the 2007 mortgage bond market, is once again hinting at a market bottom in the current scenario. This comes after he recently said it has been the same situation now compared to the banking crisis in 2003 and 2008. Burry indicated that ‘stupid’ risks lead to failure, drawing parallel with the current context after the failure of the Silicon Valley Bank and the Signature Bank.
Also Read: Ethereum Shanghai Upgrade: Staked ETH Withdrawals Delayed To May
The investor referred to the example of JP Morgan pledging money in the context of the Knickerbocker Crisis in 1907. In the context of the Silicon Valley Bank collapse, the US regulators intervened to protect deposits of the bank’s customers. Hence, he made subtle reference that the markets could bottom due to this intervention, similar to the JP Morgan action. Does this mean the Bitcoin price would further rally given the recent behavior?
“In October 1907, Knickerbocker Trust failed due to risky bets, sparking a panic. Two others soon failed, and it spread. When a run began on a healthy Trust, J.P. Morgan made a stand. 3 weeks later the Panic resolved & markets bottomed.
A stand was made this past weekend.”
This is however, in sharp contrast to his recent prediction that the banking crisis could resolve very quickly. He said there was no true danger with the situation.
Also Read: Shiba Inu Overtakes Litecoin In Mcap, Collab With Paramount Pictures Ahead?
The Federal Deposit Insurance Corp (FDIC) is currently trying to conduct an auction process for finding buyers for the Silicon Valley Bank. Meanwhile, the crypto market took an inverse correlation with the US banking sector as Bitcoin breached the $26,000 milestone on Tuesday. Hence, will BTC breach $30,000 mark in coming weeks if a market collapse materializes?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Former hedge fund manager Michael Burry made another bearish prediction for Bitcoin and traditional equities. Renowned for his short position which preceded the U.S. housing market crash, and one of the periods in recent economic history for the world, Burry believes more pain for BTC’s price is ahead.
Related Reading | Shiba Inu (SHIB) Shines Green In Pool Of Crimson – Who’s Buying?
Currently, Bitcoin is trading at $19,400 with an 8% loss in the past 7 days. The cryptocurrency was moving sideways around its 2017 all-time high levels, $20,000, but the market took yet another turn to the downside and might re-test its yearly lows near $17,000.
This could be a fraction of future losses, according to Burry. The former hedge fund manager has been bearish on BTC seems the cryptocurrency was trading north of $60,000, in October 2021. Via his Twitter account, Burry asked his followers tips on how to short a cryptocurrency:
Ok, I haven’t done this before, how do you short a cryptocurrency. Do you have to secure a borrow? Is there a short rebate? Can the position be squeezed and called in? In such volatile situations, I tend to think it’s best not to short (…).
A short time after, BTC’s price reached its current all-time high which could have resulted in major profits for Burry, if he was able to open a short position. In that case, he might still wait on taking profits, according to its latest prediction, traditional equities and BTC could experience more downside on the back of a bad earnings season:
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.
Two experts recently shared potential bullish catalyzers for Bitcoin, at least for a short period of time. Jurrien Timmer, Director of Macro for investment firm Fidelity, believes equities have a chance to rebound from their recent crash.
However, Timmer believes the risk-off season could extend further while bond yields trend upwards. In the upcoming earnings season for U.S. publicly traded companies, one could provide more clues on what’s next for the market, including Bitcoin which has been displaying a correlation with traditional equities.
With bond yields down and equities up, the correlation between the two asset classes remains slightly positive on a 12-month basis. It’s rare to see the Z-score for both stocks and bonds so negative at the same time. pic.twitter.com/BhJ8BklPmo
— Jurrien Timmer (@TimmerFidelity) July 1, 2022
On the other hand, Bloomberg Intelligence Mike McGlone has been expecting a drop in the price of commodities. If these assets trend to the downside, the Fed might slow down on its economic tightening and provide risk-on assets like Bitcoin with some room for relief.
Commodities rallying often indicate high inflation, they suggest the opposite when they trend to the downside which could suggest the U.S. financial institution might be succeeding at cutting down inflation, currently their apparent number one priority. McGlone said:
Commodities Aren’t Complicated, 1H Was High: When the history of 2022 is written, there’s a good chance that the 1H pump in commodity prices will play out like similar surges in the past, with a reciprocal dump.
Timmer and other experts believe that negative news on the economy, talks of economic recession, and a sustained market crash might allow the Fed to become more dovish on its monetary policy. The market has reacted to the downside as a result of the Fed, but some believe this will be insufficient to stop inflation.
Related Reading | Ethereum (ETH) Bends Toward $1,000 As Doubt Fills Crypto Markets
Fed Chairman Jerome Powell has expressed doubts about a less aggressive monetary policy. In an interview with The Wall Street Journal, Powell said bringing down inflation will result in “some pain” for global markets. Does this mean Burry will be right as in 2008?
Michael Burry, the co-founder of Scion Asset Management, predicted on Twitter that the market fall is about halfway through. Pointing to the massive downfall in the S&P 500, Nasdaq, and Bitcoin prices, Burry predicted that the market went through multiple compressions, with earning compression to follow.
Michael Burry became famous for predicting and profiting off the subprime mortgage crisis of 2008.
Burry highlighted that after adjusting the inflation, the S&P 500 is down 25-26%, NASDAQ is down 34-35%, and BTC is down 64-65% so far this year. According to Burry, this downward trend in the market is a result of multiple compressions.
Recently, Burry also predicted that the bullwhip effect will force the Federal Reserves to revise their interest rates hike. The bullwhip effect refers to an erroneous overestimation of the demand, leading to a stockpile of inventories. Burry believes that the deflationary pulses from the effect will be revealed in the Consumer Price Index, which will lead The Fed to reverse its quantitative tightening.
The core Personal Consumption Expenditures data, released by the Bureau of Economic Analysis, came out to be at 4.7%. It increased by 0.3% in the month of May, which was less than what many experts had predicted.
While the core PCE does not factor in energy and food, it as a sign of cooling inflation. Despite the popularity of the CPI, the Fed prefers the use of PCE to gauge the level of inflation.
Bitcoin will likely face its worst quarter in a decade. Its 58% drawdown the largest since the 3rd quarter of 2011. Inflation and hawkish monetary policies from central banks are important factors in Bitcoin’s downfall.
With the SC ruling in the GBTC and SEC lawsuit, along with CPI reveal on the 13th of July followed by the Q2 reveal on the 28th of July, the next month will be of key importance to the crypto community.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Shiba Inu continues to buck this week’s alt market downtrend, further suggesting meme coin investors have switched their focus away from Dogecoin.
Since the start of October, when SHIB began taking off, the Dogecoin clone has posted 280% gains. Its unreal run of form, combined with meme coin status, has led some purists, including Ran Neuner, to say now is a solid shorting opportunity.
More recently, investor and former hedge fund manager Michael Burry joined in with the criticism by calling Shiba Inu “pointless.”
However, the Shib Army remains unfazed, with one Twitter user (named $SHIB KNIGHT) remaining steadfast in his calls for a $0.01 $SHIB. To put some perspective on matters, Shiba Inu would need a 34,000% increase for that to happen.
While stranger things have happened in crypto, based on the current circulating supply, a $0.01 token value would mean a $4 trillion market cap for $SHIB – a huge ask if ever there was one.
#SHIB 0.01$#BONE 100$#LEASH 100K$
NOTED.
— $SHIB KNIGHT (@army_shiba) October 10, 2021
Coinbase added Shiba Inu in mid-September. While the announcement did not explicitly say this was due to customer demand, it implied this by referring to its listing process in the post.
“One of the most common requests we hear from customers is to be able to buy and sell more cryptocurrencies on Coinbase. We announced a process for listing assets, designed in part to accelerate the addition of more cryptocurrencies.”
$SHIB spiked 36% on the day of listing, followed by a two-week downturn until the start of October. From there, Shiba Inu spiked hard, blasting through $0.00000914 resistance on October 4.
Nonetheless, Burry rejects Shiba Inu on the grounds of its high total supply, which is set at one quadrillion (1,000,000,000,000,000) tokens. This, he suggests, makes $SHIB a poor investment choice, given the effect of abundant supply on price appreciation.
“Just saying, one quadrillion seconds is about 32 million years. One quadrillion days is 2.7 trillion years, or ALL of TIME, from the beginning of the universe, multiplied by 71,000. In other words, pointless.”
While critics a quick to dismiss Shiba Inu, it’s worth remembering Dogecoin faced similar calls earlier this year.
At its peak in May, the Dogecoin market cap was close to $90 billion, making it more valuable than the likes of Dell, General Motors, and British American Tobacco, much to the annoyance of the purists.
They struggled to wrap their heads around how a fundamentally weak project could hit 15,000% gains over a five-month period.
Although it’s unlikely Shiba Inu will “do a Dogecoin,” who’s brave enough to say markets are always rational?
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Michael Burry tweeted about shiba inu, the dogecoin-inspired cryptocurrency.
“The Big Short” investor dismissed the meme token, noting its supply exceeds 1 quadrillion coins.
Burry has warned against buying crypto, labeling bitcoin a speculative, debt-fueled bubble.
Michael Burry, the investor of “The Big Short” fame, isn’t a fan of shiba inu. He dismissed the dogecoin-inspired cryptocurrency, which has more than tripled in price over the past week, because there are too many of the coins in circulation.
The Scion Asset Management boss shared Coinbase’s description of the meme token in a now-deleted tweet, highlighting that its supply exceeds a quadrillion coins.
“Just saying, one quadrillion seconds is about 32 million years,” he tweeted. “One quadrillion days is 2.7 trillion years, or ALL of TIME, from the beginning of the universe, multiplied by 71,000. In other words, pointless.”
Burry’s tweet suggests he doesn’t view shiba inu as a compelling investment because the vast amount of coins in existence limits its possible price appreciation.
The hedge fund manager has been ringing the alarm on crypto this year. He described bitcoin as a “speculative bubble” fueled by huge amounts of leverage.
In addition, Burry questioned its long-term prospects, given the threat of government intervention. He also ridiculed dogecoin’s surge to a record-high price, labeling it “a doge’s breakfast.”
Moreover, Burry has compared the hype around bitcoin, meme stocks, and other popular assets to previous bubbles in housing and internet companies. He warned they’ve been “driven by speculative fervor to insane heights from which the fall will be dramatic and painful.”
Burry is best known for his lucrative bet against the mid-2000s housing bubble, which was immortalized in the book and movie “The Big Short.”
He also inadvertently paved the way for the meme-stock boom this year by investing in GameStop in 2019, and his latest portfolio update showed he was betting against Elon Musk’s Tesla and Cathie Wood’s Ark Invest.
Read the original article on Business Insider
Michael Burry, the investor of “The Big Short” fame, isn’t a fan of shiba inu. He dismissed the dogecoin-inspired cryptocurrency, which has more than tripled in price over the past week, because there are too many of the coins in circulation.
The Scion Asset Management boss shared Coinbase’s description of the meme token in a now-deleted tweet, highlighting that its supply exceeds a quadrillion coins.
“Just saying, one quadrillion seconds is about 32 million years,” he tweeted. “One quadrillion days is 2.7 trillion years, or ALL of TIME, from the beginning of the universe, multiplied by 71,000. In other words, pointless.”
Burry’s tweet suggests he doesn’t view shiba inu as a compelling investment because the vast amount of coins in existence limits its possible price appreciation.
The hedge fund manager has been ringing the alarm on crypto this year. He described bitcoin as a “speculative bubble” fueled by huge amounts of leverage.
In addition, Burry questioned its long-term prospects, given the threat of government intervention. He also ridiculed dogecoin’s surge to a record-high price, labeling it “a doge’s breakfast.”
Moreover, Burry has compared the hype around bitcoin, meme stocks, and other popular assets to previous bubbles in housing and internet companies. He warned they’ve been “driven by speculative fervor to insane heights from which the fall will be dramatic and painful.”
Burry is best known for his lucrative bet against the mid-2000s housing bubble, which was immortalized in the book and movie “The Big Short.”
He also inadvertently paved the way for the meme-stock boom this year by investing in GameStop in 2019, and his latest portfolio update showed he was betting against Elon Musk’s Tesla and Cathie Wood’s Ark Invest.
