Famous investor Michael Burry, who made a fortune by opening a short position during the real estate crisis in the USA, has set his sights on a new target: cryptocurrencies. In a tweet he shared this week and later deleted, Burry said:
“Okay, I haven’t done this before, how do you short a cryptocurrency? Do you have to borrow? Is there a short rebate?”
Burry, who made his name and fortune by betting against the housing bubble, emphasized that he only considers shorting against crypto.
“In such volatile situations, I think it’s best not to go short, but I’m thinking out loud here.”
Shorting or ‘shorting’ is a strategy used by some investors who expect prices to drop and are bearish.
The Scion Asset Management boss, who regularly deletes his tweets, recently locked his Twitter profile for new followers. He cited crypto fanatics and an army of bots who commented on his tweets to gain attention.
“Crypto/Meme bots and pumpers are responding in large numbers to large accounts for promotion. Deleting tweets discourages them. […] But the beliefs of these real and fake people are breathtaking. Speculation probably trumps anything in history.”
Burry has repeatedly criticized cryptocurrencies this year. Shiba Inu dismissed the coin as “meaningless,” mocking the rising price of dogecoin, and warning that Bitcoin is a “speculative bubble” fueled by massive amounts of leverage and vulnerable to government pressure.
The fund manager also compared the excitement about Bitcoin and other popular assets to the housing boom and dot-com bubble of the mid-2000s. He warned that they were “driven by a speculative passion to insane heights where the fall would be dramatic and painful.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.