One of most famous fund managers believes there is still some room for falling down
The protagonist of the movie “Big Short” predicted the most recent correction in the cryptocurrency market and bet on another crash on both the traditional and digital asset markets, liquidating 95% of his portfolio, leaving him with only one asset . balance sheet,
Why should cryptocurrency market care?
Michael Burry got his fame by predicting the great crisis of 2008 and making a fortune off of it. Since the cryptocurrency industry has not been a thing back then, the whole digital assets market is living through its first crisis ever.
With Buri closing almost 100% of his portfolio, it is safe to say that analysts are betting on another market reversal that will affect most cryptocurrencies if it happens. For now, bitcoin and the total cryptocurrency market capitalization are following the movement of the SP500 and the NASDAQ index.
As for now, the only stock left in Burry’s portfolio is GEO Group, which invests in private prisons and mental health facilities in the U.S. The position is worth $3.3 million.
Back in July, Bury said that we are halfway through the bear market, and that he expects another drop that hasn’t happened yet, given the 20% price increase on most digital assets.
If the trader’s prediction is right, we are going to see a massive plunge of both traditional and digital assets markets in the upcoming month. Some cryptocurrency investors have also predicted a correction as fundamental signals are moving in divergence with the price of most assets.
As of press time, bitcoin is changing hands at $24,125 with an anemic price performance over the past 24 hours.