Michael Burry — hedge fund manager, investor, and physician— has repeated his bearish stance onBitcoin(CRYPTO: BTC) days after issuing a grim warning, which prophesied losses on trendy assets approaching “the size of countries.”
What Happened:Burry issued the latest warning on Twitter and alluded to a bear trap, which is a technical pattern that incorrectly signals a reversal of a rising price trend.
This can in turn lead investors to adopt long positions in expectation of price movements that do not take place.
Why It Matters:On Monday, Burrywarned investors about mega lossesarising from the decline of cryptocurrencies and stonks, which is a reference to stocks favored by retail investors on Reddit.
“All hype/speculation is doing is drawing in retail before the mother of all crashes,” Burry said in his posts as per Bloomberg. These Twitter posts have since then been deleted.
In January, Burrycriticized retail investorsthat participated in theGameStop Corp(NYSE:GME) short squeeze.
He had said at the time that there should be “legal and regulatory repercussions” and called the actions of the investors “unnatural, insane, and dangerous.”
Burry, who became famous after making billions after betting against mortgage securities during the 2008 financial crisis, was played by Christian Bale in the film “The Big Short.”