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Hedge fund manager Michael Burry, known for correctly predicting the 2008 financial crisis, has said that he has not been shorting Bitcoin, despite speculations that he may have after he was recently asked how to short crypto.
Michael Burry is Not Shorting Bitcoin
Legendary investor and founder of private investment firm Scion Asset Management, Michael Burry, confirmed to CNBC Friday that he has not been shorting bitcoin or other cryptocurrencies and emphasized that he was only considering taking a position against crypto.
“I’ve not been shorting cryptocurrencies at all. And I’m not now … I believe that cryptocurrencies are in a bubble and that most in it do not understand it well.”
Many in the crypto community believed that Burry shorted bitcoin when the price of the cryptocurrency was $30,000 after he posted a BTC price chart suggesting that it would be a good time to short. Burry never confirmed or denied whether he shorted bitcoin until now when he tweeted Wednesday:
“Ok, I haven’t done this before, how do you short a cryptocurrency? Do you have to secure a borrow? Is there a short rebate? Can the position be squeezed and called in? In such volatile situations, I tend to think it’s best not to short, but I’m thinking out loud here."
Big Short Investors Thinks Crypto is a Bubble
Burry is best known for predicting the U.S. subprime mortgage crisis that occurred between 2007 and 2010. He is profiled in “The Big Short,” a book by Michael Lewis about the mortgage crisis, which was made into an Oscar-winning movie of the same name.
The investor also compared the excitement around bitcoin, meme stocks, and other popular assets to the mid-2000s housing boom and the dot-com bubble. He even warned they've been "driven by speculative fervor to insane heights from which the fall will be dramatic and painful."