Cryptocurrencies are the biggest bubble of all time, said legendary investor Michael Burry, who sees no fundamentals in the industry.
However, he hinted that he has been selling the 30-year Treasuries, which are debt securities issued by the United States Government, on the market. This means that an investor buying a bond lends money to the government and receives interest for it.
When selling government bonds, he indicates that he believes the Fed is likely to raise interest rates soon, which would cause treasuries to fall. The rise in the US interest rate is expected by the market, as dollar inflation has already reached 6.2% in the 2021 consolidated, already showing concerns around the world.
Michael Burry remembers that he never sold cryptocurrencies, the biggest bubble ever
In fact, Michael Burry is an investor recognized around the world for selling stocks and government bonds, betting on the market to fall. This practice is called “short” by financial analysts, indicating distrust with the future of the traded asset.
In recent days, however, he has returned to attacking the cryptocurrency market, even using a song to remind people that many people have not seen any big drops in the market. In his view, young people who invest in cryptocurrencies and Tesla shares are unprepared for the market crash, which should happen soon, he said.
However, he posted last Sunday (14) a reminder that he has not yet sold cryptocurrencies in the market, and it is unclear whether he is considering making this move anytime soon. He noted that the same cannot be said for the 30-year US Treasures he has been selling.
In suggesting that he never sold, Burry called the cryptocurrency market the biggest bubble ever, this being his third on the market. He recalled that he has already learned some things from past bubbles, which could be important to cross a possible burst of this current speculative movement in the market.
“FWIW, nunca vendi [‘shortei’] no cryptocurrency on the market. This is my third bubble, and the biggest. I learned a thing or two. 30-year treasures, on the other hand…”
It is worth remembering that Michael Burry is considered one of the biggest critics of Bitcoin, accumulating several public speeches about the market, which he considers without any value.
However, he does not usually address Bitcoin directly in his criticisms, but the entire cryptocurrency market, and it is not clear whether his criticism is directed at speculation with altcoins or at fundamentals in the technology of that market.