Michael Burry — hedge fund manager, investor, and physician— has repeated his bearish stance on Bitcoin (CRYPTO: BTC) days after issuing a grim warning, which prophesied losses on trendy assets approaching “the size of countries.”
What Happened: Burry issued the latest warning on Twitter and alluded to a bear trap, which is a technical pattern that incorrectly signals a reversal of a rising price trend.
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This can in turn lead investors to adopt long positions in expectation of price movements that do not take place.
Trapped bulls often fall for the latest support. pic.twitter.com/qshcUvpEKQ
— Cassandra (@michaeljburry) June 24, 2021
Bitcoin traded 4.37% in the red at $32,807.51 at press time. The apex cryptocurrency is down 15.53% for the week and has plummeted 49.43% since touching an all-time high of $64,863.10 in April.
Why It Matters: On Monday, Burry warned investors about mega losses arising from the decline of cryptocurrencies and stonks, which is a reference to stocks favored by retail investors on Reddit.
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“All hype/speculation is doing is drawing in retail before the mother of all crashes,” Burry said in his posts as per Bloomberg. These Twitter posts have since then been deleted.
In January, Burry criticized retail investors that participated in the GameStop Corp (NYSE:GME) short squeeze.
He had said at the time that there should be “legal and regulatory repercussions” and called the actions of the investors “unnatural, insane, and dangerous.”
Burry, who became famous after making billions after betting against mortgage securities during the 2008 financial crisis, was played by Christian Bale in the film “The Big Short.”
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