According to a filing, US investor Michael Burry placed a substantial wager on the decline of US stock prices.
At a time when the crypto market is putting traders’ patience to the test due to Bitcoin’s protracted sideways movement, American investor Michael Burry recently predicted a bear run for the U.S. stock markets.
Scion Asset Management, the firm associated with Burry, recently disclosed in a filing with the U.S. Securities and Exchanges Commission (SEC) that it placed wagers predicting a decline in major stock indices.
In the meantime, it remains to be seen if such a decline could result in a bullish run for Bitcoin’s price, comparable to the boost it received when the U.S. regional bank crisis broke out earlier in 2023.
Previously, Coincreed reported that a sustained sideways movement for cryptocurrencies could result in a price increase. At the same time, optimism regarding the potential approval of Bitcoin ETF filings in the coming months continues to rise.
Influence of Michael Burry’s Actions on BTC
According to an SEC filing, Scion Asset Management opened a massive leveraged short position on the Nasdaq 100 and the crypto-correlated S&P 500. The filing reportedly revealed that the firm purchased calls on Invesco QQQ Trust Series 1 worth $740 million and calls on the S&P 500 worth $900 million, representing approximately 93% of Burry’s total portfolio value.
Consequently, a large wager on the decline of U.S. stock prices could result in crypto market gains, as traders may prefer BTC as a high-risk, high-reward investment.
The 2008 recession precipitated the subprime mortgage crisis, which Michael Burry accurately predicted. According to respondents of the CME FedWatch Tool, the U.S. central bank, the Federal Reserve, may not increase the interest rate at the September FOMC meeting.
