Michael Burry Warns The Mother of All Crashes is Coming! Do you Believe Him?
So we have all heard of the 'BIg Short' and on Thursday, Michael Burry the man who predicted the housing crash is now warning investors about meme stocks and cryptocurrencies. He was quoted saying they are signing up for devastating losses! So the real question is do you believe him?
Burry has been in the recent news as he also helped pave the way for the GameStop short squeeze in January, which kicked off the meme-stock boom. He has been credited for buying a stake in the video-game retailer in 2019 and wrote several letters to its board, emboldening retail investors to bet on the stock. Now he changed his tune saying on twitter,
"All hype/speculation is doing is drawing in retail before the mother of all crashes," the investor tweeted. "When crypto falls from trillions, or meme stocks fall from tens of billions, #mainstreet losses will approach the size of countries." source
He also added,
"#fomo Parabolas don't resolve sideways. The problem with #crypto, as in most things, is the leverage. If you don't know how much leverage is in crypto, you don't know anything about crypto." source
So besides leverage what is making Burry so worried? My guess is back in 2018 he was waring when BT's 50MA crossed below the 200MA and $BTC crashed is spectacular fashion. Well guess what today, the 50MA and 200MA is making the cross of death again...
I for one think this time is different, but I also did not sell in 2018 so I held through the bear market. Trading is tough and I think he makes a good case for crash, but I can't justify selling all my coins. I'm considering taking some gains off the table, but since I did not at ATHs I might just diamond hands!
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