(legendary investor and the hero of a Big Short movie, Michael Bury exited from the market, leaving only one asset on his balance sheet, the move can discourage the crypto investors )
Predicting the crypto market is like playing with fortune; nobody knows where it will head next. We all know that the crypto market is highly volatile, and no one can predict certainty in real time.
Hero of the movie Big Short recently exited from all the positions leaving only one coin in his portfolio during Q2, suggesting that there may be a heavy crash in the market.
The act of Michael Bury stunned the market as he closed all his portfolios and left only one on his balance sheet. The move signifies a high possibility of crashing down the market. By closing his 100%, the portfolio analyst is betting on another market reversal that will affect all the cryptocurrencies.
So this dramatic action of Michael Bury on Crypto is undoubtedly a warning sign for crypto investors as he has exited almost 100% of his portfolio. Typically investors buy assets when things are going well and have room for potential growth in the future. But as the economy slows down, nobody wants to take risks.
Burry’s gloomy instance on the stock market is also a dangerous sign for the crypto market because the crypto market is heavily associated with the traditional stock markets, and any positive and negative change market will significantly affect both markets.
- The crypto market is under heavy pressure currently with the expectation of bearish movement in the market.
- The crypto market and stock market have a severe correlation, especially with macroeconomic events like the Russian/Ukraine conflict with the Federal Reserve interest rate; Burry’s exit from the market can also be a warning sign for the crypto world.
- Bury has an excellent track record of predicting bearish crypto trends; this time, it can also bring potential gloom to the crypto market. He bets on another crash of traditional and digital assets, as he leaves only one purchase on his balance sheet.
- Michael Bury has sold out almost every position from his portfolio except $3.3 million shares of GEO.
Bury’s action of exiting the market clearly states that the analyst is betting on the reversal of the market, which can also impact other cryptocurrencies.
As we know, the Crypto market is highly correlated to the stock market, especially regarding macroeconomic events. That’s why Michael Bury’s action can significantly impact the crypto sector.
The Quantum Economics founder Mati Greenspan also said that he is entirely unfazed by Bury’s moves after looking at the track record of his bearish scenarios.
Greenspan also said it is impossible to predict the market, as it crashes anytime. But the action of Bury can make the market bearish, and there can be a severe impact on the stock and crypto market.
Later on, Greenspan also said that investing is a long-term way, and investors shouldn’t get jumped at every piece of FUD.
Bury’s Predictions
Earlier this month, Bury warned investors that something big is yet to come by targeting US consumer credit rates, which rise by $40 billion per month in contrast to its average of $28 billion monthly.
Whatever the analysts state about Michael Bury, his predictions have a high accuracy rate. For instance, Michael Bury has also described Bitcoin as a speculative bubble with more risks than opportunities.
His indications were clear that there would be a crash soon. At that time, the crypto market was around $59,000, which fell to $34,000 by the end of May.
In June, he followed up the price action in stock and crypto markets as one of the Greatest Speculative bubbles of all time. Bitcoin surged to a new ATH in November, which was $69,044. But later on, no one needs to remember how the market has crashed since then.
Why should the cryptocurrency market care?
Michael Bury is a famous name in crypto space. After predicting the famous stock crisis in 2008 and making a great fortune, he got famous. Some of his recent outlooks about the stock and crypto market have also been fruitful. Bury has dedicated his Twitter account to crypto and stock market predictions.
For instance, in his past outlook on bitcoin, in march 2021, Burry described a speculative bitcoin bubble with more risk than opportunities as a crash will more likely unfold the market. It was true as bitcoin nearly fell $59,000 in March to around $34,000 by the end of May.
While the bury predictions have varying degrees of accuracy in the crypto market, his current outlook must be addressed as there is always some accuracy in his signs.
With bury closing all his portfolios, analysts are looking for further bets on the market. As it happens, the crypto market will experience a heavy fall if the investor’s prediction goes right.
We will see a crashed market in 2023 both for the traditional stock and crypto sector. Some analysts also argue that the fundamentals diverge with changes in the price of assets.
Bury may have predicted the cryptocurrency market correctly, but Quantum Economics’ founder and CEO Mati Greenspan seem unconcerned by his actions.
Greenspan, an American economist, stated that there is always something bearish on the crypto horizon, so it’s impossible to predict the scale of the crashes and the accuracy of the crypto crash. He says it is similar to the prediction of an earthquake, even though it will occur. You never know when and how severely it will occur.
“Predicting a stock crash is a lot like predicting an earthquake. You know one will happen every so often, but you can never tell exactly when or how severe it will be.”
Additionally, he advocated for investors only to trust specific online information sources. Jumping in the shadows only sometimes works in your favour.
According to Greenspan,” it’s nearly impossible to predict the timing and severity of the crypto market collapse; there is always something wrong about the money market that can cause adverse scenarios and potentially crash the stock and crypto market.
FAQs
Q. When to exit a crypto market?
Ans. When investing in the crypto market, you must set a target price for each investment. Once the price you have set reaches the target position, you can exit the market. However, it is crucial to notice the cryptocurrency market is highly volatile, so there can also be price swings.
Q. What is a bearish market?
Ans. A bearish market signifies a plunge or more than a 50% drop in the market.
Q. Should you buy an asset when the market is bearish?
Ans. It is a good sign if you hold it for a long time until the market recovers. Conversely, a bearish stock is something that analysts think will not perform well; however, it can change at any time as the crypto market is highly volatile.
Q. How long do bear markets last?
Ans. According to a report by Coinpedia, bearish markets only tend to last for a shorter time. Surprisingly, they usually last just 9.6 months. However, in rare cases, the downturn can last more than a year.
Q. What is the best strategy in a bear market?
Ans. A bear market signifies a prolonged drop in the market. So the best strategy in the bear market is to hold and buy.
