Michael Burry is termed as “the biggest short” for successfully profiteering from short-selling house markets during the 2008 financial crisis, except that he is not shorting Bitcoin for now because he thinks it is a sham.
He took to Twitter on Friday claiming that the huge volatility in the market does not make Bitcoin a good bet.
“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,” he tweeted.
Burry said that cryptocurrencies are driven by sheer speculation which is now reaching its insane height right now, meaning the downfall is imminent and would be tragic and very painful. He has since deleted these tweets and his account too.
His critical comments came shortly after the renewed bull market, with Bitcoin registering massive price gains since Thursday.
Burry has stayed critical about cryptocurrencies and seems not deterred by their upsurge. He recently claimed crypto bots have been commenting heavily on his tweets to achieve a high ranking or approval, one of the reasons he routinely deletes tweets and takes his profile offline or to private mode from time to time. He has also been accused of blocking people whose profiles have Bitcoin undertakings.
“Crypto/Meme bots and pumpers reply to big accounts in huge numbers for the promotion. Deleting tweets knocks it back. Going Private allows tools to discourage them.”
“But it’s breathtaking, this religion of real and fake people,” he continued. “The speculation probably tops anything in history.”
He got a lot of backlash from crypto proponents for these comments. This and the fact that his comments are watched closely by the entire financial community, and even the Securities Exchange Commission – which he claimed has visited his company once after some tweets, also makes him fade off Twitter unannounced.
Earlier last week before making the remarks about crypto and withdrawing from Twitter on Friday, he rejected the claim that the wealthiest 1% of people in the U.S. don’t pay enough taxes.
Before deleting his account on Friday, Burry also commented on MSCI’s recent research revealing that institutional investors were experiencing a creeping exposure to crypto even as massive investment flow from these investors into crypto.
“MSCI says there is 7.1 trillion in market cap tied to stocks of companies holding crypto. But MSCI also says only 79 people of 6,500 corporate board members have crypto expertise. This is, as they say, a feature, not a bug.”
In June, he deleted his profile after issuing warnings about a looming financial market bubble, and a crash he said would be the worst in history.