Hedge fund manager Michael Burry was one of the first major investors to see the 2008 credit crisis coming. His actions were immortalized in the movie ‘The Big Short’. Today, Burry is warning investors that we may be a long way from seeing the bottom.
Michael Burry is not positive
Two days ago, the founder of the famed Scion Capital on Twitter (The original message has since been deleted, as we are used to from Burry) We know that the current turmoil in the markets is characterized by multiple phases of compression. He states that we have already gone through a number of those phases, but that there are now earnings compression is coming. If so, investors will have to start preparing for even more pain, Burry said.
Adjusted for inflation, the S&P 500 fell 25-26% in the first half of 2022, the Nasdaq 34-35%, Bitcoin 64-65%. That was multiple compression. The next step is gain compression. So, maybe halfway through,” Burry said.
The hedge fund manager has already warned that rising inflation could have a negative impact on American earnings. Burry noted that in the current climate, Americans are saving less as they build up credit card debt, and all of their savings will likely be exhausted by Christmas.
When will there finally be a BTC bottom?
If we are to believe Burry, we will only plummet further in the near future. According to him, we are only halfway through the major market correction he predicted months ago. If we translate that to the bitcoin (BTC) So, according to Burry, it could be that the bottom is around $10,000.
However, our own Crypto Insiders bitcoin analyst expects a bottom earlier. Yesterday was read It is also possible that the bitcoin bottom will already form around the price point of $15,000.