Despite the ongoing SVB and Silvergate scandal, Michael Burry is once again indicating a market bottom. Burry, who is a hedge fund manager famously known as “The Big Short,” is an investor who often makes headlines for predicting the direction of the financial markets.
The US regulators intervened to protect the deposits of the bank’s customers in the wake of the collapse of Silicon Valley Bank, in a manner similar to how JP Morgan intervened in the Knickerbocker Crisis in 1907, and he also subtly hinted that the markets might bottom out as a result of this action, according to Burry.
“In October 1907, Knickerbocker Trust failed due to risky bets, sparking a panic. Two others soon failed, and it spread. When a run began on a healthy Trust, J.P. Morgan made a stand. 3 weeks later the Panic was resolved & markets bottomed. A stand was made this past weekend,” he wrote on Twitter.
Bitcoin’s surprise Tuesday breach of the $26,000 level caused the cryptocurrency market to move in the opposite direction of the US financial sector. It seems that the crypto sector is currently unfazed by the events occurring and it is paving way for BTC to breach the $30k mark.
Burry is known for his bearish predictions for the markets and the economy. He became famous for his bets against the US housing market in the years leading up to the 2008 financial crisis. The investor has also lately compared Silicon Valley Bank to Enron, the energy trading giant that made headlines in 2001 when it went bankrupt owing to accounting fraud. The banking sector needs more transparency, as shown by Burry’s warnings.
He also warned about the status of the financial sector in a now-deleted March 12 tweet while criticizing Silicon Valley Bank’s (SBV) executives for their actions.”My hope is that the human race will reverse direction, away from impatient, lazy shortcuts always and everywhere,” Burry said.
This article has been originally published at: https://coinpedia.org/news/michael-burry-hints-at-a-potential-bitcoin-rally-heres-what-he-predicts/