'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.

Jun 21, 2021 at 11:26 a.m. UTC
Updated Sep 14, 2021 at 1:14 p.m. UTC

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.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

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 a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Brian Forde: Why Congress Needs a Crypto 'Truth Teller'

He explained Bitcoin to Barack Obama and ran one of the first election campaigns emphasizing crypto. He says Congress needs more people who understand science and technology.

He explained Bitcoin to Barack Obama and ran one of the first election campaigns emphasizing crypto. He says Congress needs more people who understand science and technology.

2
US Agencies Warn of Attempts by North Koreans to Get IT Jobs While Concealing Nationality

In many cases, these workers say they are U.S.-based and not North Korean teleworkers, and they often take on virtual currency projects.

In many cases, these workers say they are U.S.-based and not North Korean teleworkers, and they often take on virtual currency projects.

3
Oasis Pro Raises $27M for Crypto Securities Trading Platform

CEO Pat LaVecchia, a former MakerDAO compliance adviser, said Oasis Pro is in the “early stages” of integrating with DeFi platforms.

CEO Pat LaVecchia, a former MakerDAO compliance adviser, said Oasis Pro is in the “early stages” of integrating with DeFi platforms.

4
UST Won't Be the End of Algorithmic Stablecoins

The trail for a monetary "Holy Grail" continues, despite Terra’s collapse. So what do we do about it?

The trail for a monetary "Holy Grail" continues, despite Terra’s collapse. So what do we do about it?