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<p>Michael Burry, famed for his uncanny market predictions showcased in “The Big Short,” has made another move, one that suggests he may be anticipating a downturn in the market.</p> 
<h2 id="the-big-bet-against-sp-500-and-nasdaq-100">The big bet against S&amp;P 500 and Nasdaq 100</h2> 
<p>According to the latest securities filings, his firm Scion Asset Management has made <a href="https://crypto.ro/en/dictionary/bear/" rel="noopener noreferrer nofollow">bearish</a> bets against two key market indices. The company has acquired put options against the Invesco QQQ Trust ETF with a notional value of $739 million and against the SPDR S&amp;P 500 ETF with a value of $886 million.</p> 
<p>It remains unclear due to regulatory frameworks how much was paid for these options or their current value, and whether they were held outright or as part of a larger trade.</p> 
<h2 id="deciphering-burry-s-strategy">Deciphering Burry’s strategy</h2> 
<p>Given Burry’s historical feats, namely his well-timed bet against the U.S housing market that predicted the 2008 financial crisis, these recent moves have set the investment community abuzz.</p> 
<figure id="attachment_23505" aria-describedby="caption-attachment-23505" style="width: 100%" class="wp-caption alignnone"> 
 <img decoding="async" class="wp-image-23505 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/08/F3hCVPGXEAAySDf.jpg" alt="Michael Burry's porotofolio" width="1541" height="981" srcset="https://crypto.ro/en/wp-content/uploads/2023/08/F3hCVPGXEAAySDf.jpg 1200w, https://crypto.ro/en/wp-content/uploads/2023/08/F3hCVPGXEAAySDf-300x191.jpg 300w, https://crypto.ro/en/wp-content/uploads/2023/08/F3hCVPGXEAAySDf-1024x652.jpg 1024w, https://crypto.ro/en/wp-content/uploads/2023/08/F3hCVPGXEAAySDf-768x489.jpg 768w, https://crypto.ro/en/wp-content/uploads/2023/08/F3hCVPGXEAAySDf-750x477.jpg 750w, https://crypto.ro/en/wp-content/uploads/2023/08/F3hCVPGXEAAySDf-1140x726.jpg 1140w" sizes="(max-width: 1541px) 100vw, 1541px" title="The Big Short sequel? Michael Burry's bearish bets on market indices 1"> 
 <figcaption id="caption-attachment-23505" class="wp-caption-text">
   Michael Burry’s porotofolio 
 </figcaption> 
</figure> 
<p>It’s worth noting that the S&amp;P 500 and Nasdaq 100 have shown remarkable resilience this year, gaining about 17% and 39% respectively. Moreover, notable giants like Nvidia and Meta Platforms have been key drivers of this year’s impressive rally.</p> 
<p>Adding another layer of intrigue, the filings revealed that Burry’s fund also offloaded its investments in Chinese e-commerce behemoths JD.com and Alibaba Group Holdings, along with regional banks like PacWest and Western Alliance Bancorp.</p> 
<h2 id="implications-for-the-cryptocurrency-sphere">Implications for the cryptocurrency sphere</h2> 
<p>While Burry’s moves primarily revolve around traditional market structures, their potential repercussions for the <a href="https://crypto.ro/en/cryptocurrencies/" rel="noopener noreferrer nofollow">cryptocurrency</a> space cannot be ignored. Historically, significant downturns in traditional markets have had cascading effects on digital currencies.</p> 
<p>Despite the macroeconomic moves, the crypto market has shown resilience. <a href="https://crypto.ro/en/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> continues to hold below the $29,400 mark, demonstrating the asset’s stability. Other major cryptos like <a href="https://crypto.ro/en/cryptocurrencies/ethereum" rel="noopener noreferrer nofollow">Ethereum</a>, Cardano, Solana and <a href="https://crypto.ro/en/cryptocurrencies/dogecoin" rel="noopener noreferrer nofollow">Dogecoin</a> have seen minor fluctuations, further emphasizing the dynamic nature of the crypto market.</p> 
<h2 id="new-long-positions-highlighted">New long positions highlighted</h2> 
<p>The recent disclosures also showcased the fund’s bullish stance on several firms. Scion Asset Management augmented its stake in the luxury online market, RealReal Inc, by an impressive 100%.</p> 
<p>Furthermore, it revealed fresh investments in iHeartMedia, HanesBrands, and Warner Bros. Discovery. Interestingly, while iHeartMedia and HanesBrands witnessed a dip of 16% or more this year, Warner Brothers Discovery surged by approximately 43%.</p> 
<p>In a move that perhaps showcases diversification, the firm acquired 10,000 shares of the iShares MSCI Japan ETF, enjoying a 13.5% rise this year.</p>

The Big Short sequel? Michael Burry’s bearish bets on market indices

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