Michael Burry made statements regarding cryptocurrencies in a recent tweet. Head of Scion Asset Management pointed to the short position and stated that he was interested in the market. As we previously reported, the post brought up the idea that Burry was expecting a drop.
However, the investor of “The Big Short” fame revealed in a recent email to CNBC that he is not betting on a crypto crash and has actually bought several tokens.
“Cryptocurrency I have never opened a short (position) in the units.” said. “I didn’t get involved with them out of an amateur interest – I’m actually long on a pair I see as the ‘better’ cryptocurrencies.”
Burry, who made his name and fortune by betting against the housing bubble, asked on Twitter how to short the cryptocurrency, as he wanted to highlight his concerns about the market. “I believe cryptocurrencies are in a bubble and most insiders don’t understand it well,” he told CNBC.
Still, the hedge fund manager said that blockchain technology is of interest and he expects it to be useful, and he sees value in immutable tokens (NFTs) beyond the digital art market.
Burry’s recent comments suggest that he realizes the potential of crypto, but he is skeptical of the exaggerated interest and striking values. The head of Scion had previously described the Shiba Inu coin as “nonsense,” mocking the skyrocketing price of Dogecoin, and warning that Bitcoin is a “speculative bubble” built on massive leverage and vulnerable to government pressure.
Burry rose to fame with his winning bet against the housing bubble of the mid-2000s. He also accidentally ignited the meme stock frenzy by investing in GameStop in 2019, and this year he took a short position against Elon Musk’s Tesla and Cathie Wood’s Ark Invest. The investor recently stated that the Tesla bet is just a trade and no longer shorts the clean energy company.
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.