One of most famous fund managers believes there is still some room for falling down
The hero of the “Big Short” movie who predicted the most recent correction on the cryptocurrency market and made a bet on another crash on both the traditional and digital assets markets liquidated 95% of his portfolio, leaving only one asset on his 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.
Official Update 🚨:
Michael Burry has sold out of every position except for $3.3M shares of $GEO
GEO Group is a C corp that invests in private prisons & mental health facilities including illegal immigration detention facilities.$GEO is up 10% today.
— Michael Burry Stock Tracker ♟ (@burrytracker) August 15, 2022
With Burry closing almost 100% of his own portfolio, it is safe to say that the analyst is betting on a further reversal of the market, which will affect most cryptocurrencies if it happens. As for now, Bitcoin and the total cryptocurrency market capitalization are following the movement of the SP500 and NASDAQ indexes.
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, Burry stated that we are halfway through the bear market, and he expects another plunge that has not happened yet considering the 20% price increase on the majority of 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.
At press time, Bitcoin is changing hands at $24,125 with an anemic price performance in the last 24 hours.