Experts explain what 'Big Short' Michael Burry's stock exit means for crypto

cointelegraph.com:

Michael Burry, the investor who famously shorted the 2008 housing bubble, has dumped nearly all the stocks in his portfolio during Q2, suggesting there may be carnage ahead for stock and crypto markets.

According to a 13F disclosure filed with the Securities and Exchange Commission (SEC) on Aug. 15, Burry’s hedge fund Scion Asset Management shed around $292 million worth of shares across companies from Apple and Meta to pharmaceuticals giant Bristol-Myers Squibb, leaving only a minor position in a private prison company.

Michael Burry selling everything and buying a large position in a private prison company after seeing the IRS is hiring 87,000 new agents pic.twitter.com/lT5ny4SdlC

As Bitcoin (BTC) and crypto have a strong correlation to the stock market, especially in relation to macroeconomic events such as Federal Reserve interest rate hikes and the Russian/Ukraine conflict, Burry’s bearish outlook on stocks may also be a warning sign for the crypto sector.

However, asked by Cointelegraph whether Burry’s actions could spell potential gloom for the crypto markets, Quantum Economics founder and CEO Mati Greenspan said he is relatively unfazed by Burry’s moves, despite his track record of predicting bearish scenarios.

Greenspan stated that it's near impossible to predict the time and scale of crashes, and suggested that there is generally always something bearish on the horizon that could potentially send stock and crypto prices crashing.

He also stressed that investors shouldn’t jump at every piece of FUD that circulates online, noting that “investing is a long-term play and doesn't normally work out for people who jump at shadows.”

Earlier this month, Burry warned investors that despite the recent rally in crypto and