Michael Burry, the investor renowned for his accurate prediction of the 2008 financial crisis, has once again voiced his disapproval of Bitcoin, declaring the cryptocurrency is “worth nothing.”
Summary
- Michael Burry claims Bitcoin is “worth nothing.”
- The investor, known for forecasting the 2008 financial crisis, has criticized the cryptocurrency as a speculative bubble lacking real support.
- Crypto markets remain volatile and are highly responsive to regulatory changes and investor sentiment.
Burry asserted that Bitcoin’s ascent to six-figure valuations symbolizes a speculative bubble devoid of quantifiable fundamentals. On Michael Lewis’ podcast, he pointed out that the widespread endorsement of Bitcoin’s inflated prices reflects market actions typical of speculative behavior.
Burry gained fame for pinpointing structural weaknesses in the housing market that led to the financial collapse in 2008, a prediction captured in Lewis’s book “The Big Short” and its film adaptation directed by Adam McKay.
Recently, Bitcoin has traded above $100,000, experiencing a notable rise from its previous levels, with a 6% daily increase. Nevertheless, it has dropped 18% over the past three months. See below.
Despite ongoing discussions about its intrinsic value, the cryptocurrency continues to draw both institutional and retail investments.
Burry has consistently expressed skepticism toward Bitcoin, challenging its valuation methods and likening its price fluctuations to historical speculative bubbles.
The investor’s remarks come amid significant volatility in cryptocurrency markets, with Bitcoin prices dramatically changing in response to regulatory shifts and evolving investor sentiment.
Is a bad situation about to get worse?
Burry’s concerns extend beyond Bitcoin. “I believe we are in a precarious situation in the stock market. The stock market could face several challenging years ahead,” Burry stated during his conversation with Lewis on the “Against the Rules” podcast.
Burry expressed to Lewis that concentrated capital and inflated valuations have compromised price discovery, setting the stage for an unusually extensive market downturn.
He contended that the passive nature of the market would exacerbate the consequences, leading to most assets declining in tandem and making it challenging “to hold onto anything and feel secure.”
