Michael Burry, who is known for his prediction of the 2008 housing crash, warns again by saying that cryptocurrencies are in a bubble. And this is not the first time he is saying so. We have heard this from him multiple times in the last 1 year. So, to anyone, it would seem that he has a short position open in crypto. But Michael has confirmed that he hasn’t shorted cryptocurrencies. He thinks that crypto is just too volatile to take a position like that.
Micahel on the crypto bubble
We need to understand that if Micahel hasn’t ever shorted any crypto, he doesn’t have to gain anything from this. If you learn about his prediction during the 2007-8 housing crash, the man is a genius. But it is not necessary that every time someone’s predictions have to be right. But for Michael, he seems to think he is right. He said that this is the 3rd bubble of his life and actually the biggest of all, which is concerning.
Micahel even said in an interview with CNBC that no matter how much he tweets about them or explains to the masses how to short them, he doesn’t have a position. Michael once said that when the market falls from trillions of dollars, the size of losses in the main street will be the size of countries.
Is Bitcoin a bubble?
We say some particular assets are in a bubble when the price of the same is overpriced. This means in the short term, it can be chased by the investors, but the price dumps in the long run. To take this into perspective, we should make a case for BTC. The volatility of Bitcoin and how the price of the cryptocurrency rises make it seem like a bubble. Since it has a cycle of rallying after the halving happens, like in 2013, 2017, or 2021, the price rise seems to be fast and unsustainable. But it has always proved theorists wrong who say BTC is a scam or a bubble. It has fallen, crashed to the ground numerous times but got back up again.
What are your thoughts as Michael Burry warns again about the crypto bubble? And do you think that Michael could be right about this? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Technical analysis suggests that Bitcoin is due $90k in a few weeks.
