Recently, Michael Burry the hedge fund manager warned about a sharp decline in cryptocurrencies market due to use of leverage. He was one of the first investors, who could predict the crisis related to mortgages and another US banks lending between the years 2007 and 2010 and gain profit. Now, he has argued that crypto market crash is on the way.
Crypto Market Crash
Michael Burry twitted on Thursday, “When cryptocurrency market crashes by billions of dollars, Main Street will suffer a notable loss equivalent to a country’s capital fund”. He added that “the main reason is the utilization of leverage. If you do not know how much leverage is using for trading in crypto market, you know nothing about this market.
Burry had talked about governments’ strictness towards cryptos before. He had pointed out that in the inflation crisis, governments try to wipe out rival currencies. Although he does not have any problem with Bitcoin, he believes that the future of decentralized world of cryptos is not promising. Governments’ centralization, strictness of rules and governments’ support to their vital interest in the field of currencies are some of the main reason for this opinion.
Michael Burry not alone, Robert Kiyosaki has also cautioned a crash in crypto market. According to Kiyosaki, one of the sharpest crash of the history is on the way. He has predicted Bitcoin price to decline to the $24000 level, which would be a great opportunity for him to add to his bitcoins. Unlike Michael Burry, PlanB the S2F pattern developer stated that he is waiting for Bitcoin to climb up to $98000 by November. What do you think about the performed predictions? Let us know your ideas in the comments below.