‘Big Short’ Investor Michael Burry Warns Mother Of All Crashes Is Coming For Crypto & Meme Stocks
— Updated on 21 April 2022

‘Big Short’ Investor Michael Burry Warns Mother Of All Crashes Is Coming For Crypto & Meme Stocks

— Updated on 21 April 2022
Garry Lu
Garry Lu

When Scion Asset Management founder and renowned investor of The Big Short fame – Dr Michael Burry – is right, he’s right in a tremendous, landscape-changing way. The good doctor was right on the money when it came to the housing market crash which preceded the global financial crisis of 2007-08, hopped on the GameStop (NYSE: GME) short squeeze train long before it was cool; and in his latest prediction, Michael Burry has sounded the alarm on the “mother of all crashes” coming for both cryptocurrencies and meme stocks.

“All hype/speculation is doing is drawing in retail [investors] before the mother of all crashes,” tweets Burry about the modern-day investing’s worst kept secret (i.e. we are indeed living in the days of a bubble).

“When crypto falls from trillion, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries.”

The man himself also had some thoughts about the cult of crypto, which has seen many self-styled investors borrowing capital in exceedingly reckless fashion just to acquire more volume in the pursuit of gains far beyond their means.

“The problem with #Crypto, as in most things, is the leverage. If you don’t know how much leverage is in crypto, you don’t know anything about crypto.”

RELATED: ‘Big Short’ Investor Michael Burry Predicts Tesla Stock Could Plummet By 90% This Year

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Previous to this, Burry’s other major prediction for 2021 involves the Tesla stock (NASDAQ: TSLA) plummeting by as much as 90% this year. Citing the company’s “current ridiculous price” with comparisons to the housing bubble before urging the general population to “sell that #teslasouffle”, last month, it was revealed that Scion Asset Management was actually holding bearish put options on 800,100 Tesla shares valued at approximately US$534 million / AU$680 million (as of March 31st).

“$TSLA below $100/share by later this year will not crash the system,” tweets Burry.

“There is no reflexivity in such a fall. But it would trigger the end of an era for a certain type of investing.”

“My last Big Short got bigger and bigger and BIGGER too… Enjoy it while it lasts.”

After offering his two cents about the coming crypto and meme stock crashes, Dr Michael Burry once again deactivated his Twitter account, which is under the handle @Cassandra – a reference to the priestess in Greek mythology cursed to share true prophecies but never to be believed.

No doubt he’ll return when the world needs him like the goddamn Avatar of finance.

Itching to get in on all the action? Check out our definitive guide on how to buy US shares in Australia here.

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Garry Lu
After stretching his legs with companies such as The Motley Fool and the odd marketing agency, Garry joined Boss Hunting in 2019 as a fully-fledged Content Specialist. In 2021, he was promoted to News Editor. Garry proudly retains a blue belt in Brazilian Jiu-Jitsu, black bruises from Muay Thai, as well as a black belt in all things pop culture. Drop him a line at [email protected]