'Big Short' Fund Manager Warns of 'Mother of All Crashes' in Crypto

Michael Burry issued the warning in a series of tweets that have since been deleted.

AccessTimeIconJun 21, 2021 at 11:26 a.m. UTC
Updated Sep 14, 2021 at 1:14 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Michael Burry, the fund manager who gained notoriety from "The Big Short," has warned crypto investors to expect the "mother of all crashes."

  • Burry, who is famous for betting against the U.S. subprime mortgage market and profiting from the 2007-2008 financial crisis, issued his warning in a series of tweets that have since been deleted, Bloomberg reported Friday.
  • His story was made famous in Michael Lewis's 2010 book "The Big Short" and the 2015 film adaptation of the same name.
  • "All hype/speculation is doing is drawing in retail before the mother of all crashes. When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain't changed," he wrote.
  • Crypto's problem is in leverage, he said. "If you don't know how much leverage is in crypto, you don't know anything about crypto, no matter how much else you think you know."
  • Burry has retracted Twitter posts in the past. In February, he tweeted that Tesla had bought bitcoin as a distraction from concerns raised by Chinese regulators over quality and safety issues of its cars, before then deleting it.
  • He also referred to bitcoin as a "speculative bubble," comparing it to housing in 2007 and the internet in 1999, in another tweet he quickly deleted.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Read more about