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.”
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.
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.
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