Michael Burry made $800 million during the 2008 crash, $100 million for himself and $700 million for his investors, making him an icon for financial market bears.
However, their predictions do not always come true. On the first Wednesday in February, the day the Fed was due to raise rates again, Burry expressed his market pessimism with a single word: “sell.”
Even without giving clues as to what assets he was talking about, his prediction was far from accurate.
For example, the S&P 500 index remains static after recovering from a brief 5% drop amid rising US interest rates. Bitcoin, on the other hand, is up 24% since the infamous tweet from the investor who had his life told in the movie The Big Bet (2015).
Michael Burry admits he was wrong
As markets survived the Fed’s brutal rate hike, Michael Burry took to his social media this Thursday (30) to admit he was wrong.
“I was wrong to say ‘sale’.”
Before that, Burry was also calm about the bankruptcy of US banks. Despite hitting the banking sector in other countries, investors saw no cause for concern.
“This crisis can be resolved very quickly. I don’t see the real danger here.”
Starting with an investor known for his pessimism, a profile that archives Burry’s tweets even created a poll to find out if he was serious or not. As you can see, the mood was close.
Market is weird
Despite the markets pulling back with the “end of easy money”, US equities remain at a high. The same goes for Bitcoin, which reached $29,000 this Thursday (30) despite the closure of cryptocurrency-affiliated banks and the recent CFTC lawsuit over Binance.
According to analysts, the rise of Bitcoin is linked to the rise of the US stock market, which would explain this move, which initially seems to deviate from what is happening in the industry.
Finally, these highs and other data show that the US economy is still hot and the Fed is far from controlling dollar inflation. That is, we can expect another hike in interest rates at the next meeting.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
