Michael Burry’s Sell Could Mean Crypto Trouble Ahead of Fed Decision
• Michael Burry, legendary trader and investor, tweeted a single word “sell” ahead of the U.S. Federal Reserve’s interest rate decision.
• Burry is known for predicting the 2007-2010 subprime mortgage crisis, and his latest tweet could be interpreted as expecting a similar market situation triggered by the Fed rate decision.
• Given Bitcoin’s correlation with the S&P 500 and macroeconomic influence, Burry’s warning could also be sending a signal to crypto investors.
Just hours before the U.S. Federal Reserve’s interest rate decision today, legendary trader and investor Michael Burry issued a warning for the financial market that could affect Bitcoin and crypto as well. In a single word tweet – “Sell” – he seemingly signalled his expectation of a similar scenario to the 2007-2010 subprime mortgage crisis, which he had predicted.
Burry is a renowned figure in the investment world. He is famously known for shorting the mortgage bond market in 2007 by swapping CDOs and making big profits as a result. Already on January 23, Burry shared a chart of the market from the dot-com crash on Twitter and said “maybe.” He seemed to be circling a dead cat bounce, where the S&P 500 index rallied 20% over the turn of the year from 2001-2002 before falling another 30%.
Today’s latest tweet can be interpreted that Burry is currently expecting a similar scenario, presumably triggered by today’s announcement of the Fed rate decision in the U.S. and the subsequent FOMC meeting where Fed Chairman Jerome Powell will talk about the latest data and expectations.
Given Bitcoin’s correlation with the S&P 500 and macroeconomic influence, Burry’s warning could also be sending a signal to crypto investors. The S&P 500 and Bitcoin have rallied sharply from their lows since inflation data has come down sharply in recent months. However, an unexpected Fed decision could be a dagger.
While it remains to be seen whether Burry’s prediction will come true, it is crucial for crypto investors to pay attention to the news and current market trends in order to make informed decisions. The Fed’s interest rate decision and subsequent FOMC meeting will be closely watched, and any unexpected news could have significant implications for the cryptocurrency market.