Is There a Way To Short Bitcoin? Michael Burry of ‘The Big Short’ Fame Ponders Before Quitting Twitter

Mandatory Credit: Photo by Dave Allocca/Starpix/Shutterstock (5630768be)Michael Burry'The Big Short' film premiere, New York, America - 23 Nov 2015New York Premiere of 'The Big Short' from Paramount Pictures & Regency Enterprises.
Dave Allocca/Starpix/Shutterstock / Dave Allocca/Starpix/Shutterstock

Days before Bitcoin hit an all-time high last Friday, exceeding $60,000, “The Big Short” investor Michael Burry pondered in a tweet, “How do you short a cryptocurrency?” Burry deleted his Twitter account shortly after asking the Twitter community on Wednesday, “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.”

Previously: Michael Burry of ‘The Big Short’ Fame Bets Big Against Cathie Wood’s ARK
Learn More: ‘Rich Dad’ Author Robert Kiyosaki Recommends Bitcoin Investments Before ‘Biggest Crash in History’

Burry clarified to CNBC Friday, “I’ve not been shorting cryptocurrencies at all. And I’m not now …” However, he said that he believes cryptocurrencies, including Bitcoin, are in a bubble and that “most in it do not understand it well.”

It’s not the first time Burry has made incendiary or controversial claims and then deleted his Twitter account, Fortune pointed out. In April, Burry warned about a financial market crash and then deleted his account. He returned for a week in June to warn of a massive bubble and market crash, then vanished from the social network yet again.

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Related: How to Short a Stock — and Why You Shouldn’t

Earlier this year, the Securities and Exchange Commission started taking a closer look at Burry’s social network activities, Fortune reported. The regulatory group started peering into the actions of Scion Asset Management, Burry’s investment firm.

Burry’s claims, in the past, have not been completely off the mark. Burry predicted the 2008 housing bubble, crash and resulting financial crisis.

As of midday Monday, Bitcoin has dropped from its high point to $61,866.30. But as the first Bitcoin futures-based ETF is set to debut on the New York Stock Exchange tomorrow, according to CNBC, Bitcoin could continue to climb.

See: What Is the Next Big Cryptocurrency To Explode in 2021?
Find: 10 Cheap Cryptocurrencies To Buy

ETFs, after all, will lend further legitimacy to cryptocurrency. Ian Balina, CEO of the data and analytics firm Token Metrics, told CNBC that crypto ETFs “will be probably the biggest endorsement from the SEC for crypto.” He added, “This will be a floodgate of new capital and new people into the space.”

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Last updated: October 18, 2021

About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

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