Version

Silver

Bitcoin

Read

<div class="cryptonews"> 
 <p class="is-style-lead">Michael Burry, famous for predicting the 2008 crisis, stuns the market with a massive bet against the S&amp;P 500 and Nasdaq 100. But will it affect crypto?</p> 
 <p>Remember Michael Burry? If you’ve watched or read “The Big Short,” his name echoes as the audacious maverick who bet against the US housing market before the 2008 financial collapse.</p> 
 <p>With staggering positions in put options, Burry’s bearish stance on the S&amp;P 500 and Nasdaq 100 Index could send ripples across the investment landscape. What does this mean for the world of cryptocurrency, especially Bitcoin?&nbsp;</p> 
 <p>Fast forward, Burry’s Scion Asset Management has taken a bearish stance with a combined notional value of $1.6 billion in put options against the S&amp;P 500 and Nasdaq 100. The crypto world, eyes wide open, is watching with anticipation.&nbsp;</p> 
 <p>To break it down, a put option grants the right to sell shares at a set price in the future, typically reflecting a bearish view. With a notional value of $739 million against the Invesco QQQ Trust ETF and $886 million against the SPDR S&amp;P 500 ETF, the bet is anything but small.</p> 
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
  <div class="wp-block-embed__wrapper"> 
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
    <p lang="en" dir="ltr">Michael Burry places a huge leveraged <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> position on the stock market with put options.<br><br>The Big Short Version 2.0 pic.twitter.com/8SHtZ0r4V9</p>— Wall Street Silver (@WallStreetSilv) August 14, 2023 
   </blockquote> 
  </div> 
 </figure> 
 <p>As of Aug 16, the S&amp;P 500 is up about 17% this year, and the Nasdaq 100 has soared nearly 39%. Is Burry seeing something others aren’t?&nbsp;</p> 
 <p>The exact reasons behind this enormous bet remain shrouded in mystery, as the regulatory filings don’t provide all the details. One can’t help but recall Burry’s precise anticipation of the 2008 disaster. Is history repeating itself, or is this merely an intricate hedging strategy?</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Big Short’s Michael Burry new prediction could affect crypto markets 
 </div> 
 <h2 class="wp-block-heading" id="potential-bullish-run-for-bitcoin">Potential bullish run for Bitcoin</h2> 
 <p>The strategic <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> position taken by Michael Burry could be a catalyst for a surge in Bitcoin’s (BTC) value, similar to the rally observed during the US regional bank crisis in January 2023.</p> 
 <p>Now, with the US stock markets showing signs of vulnerability again and the potential for a bearish turn, investors may likely scan the horizon for alternative avenues for their capital.&nbsp;</p> 
 <p>Crypto, particularly Bitcoin, may present attractive <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a>-term opportunities, given its high-risk, high-reward profile. As of Aug 16, Bitcoin’s performance has been impressive, surging 82% year-to-date (YTD) and trading at $29,112.&nbsp;</p> 
 <figure class="wp-block-image is-style-default"> 
  <img decoding="async" src="https://lh3.googleusercontent.com/nJa5ui_ZUycWdXQt8pE_ASwmz_xlVXLnd3CtwyAbNOddMzvylqwqIp7C-6tpdtZgXE3I3qs6P3JJl5zMTn3P5hPTCb5W4gjrXojgb1Rxwv-pkLxau9T4_Sq2y4kX0rSyrOUIX4c9pkBKuvYP0iZyAZY" alt="BTC YTD price chart | Source: CoinMarketCap"> 
  <figcaption class="wp-element-caption">
    BTC YTD price chart | Source: CoinMarketCap 
  </figcaption> 
 </figure> 
 <p>This strong growth remains despite the market’s sideways trading over the past month and increased regulatory scrutiny.&nbsp;</p> 
 <p>Furthermore, the continued optimism surrounding Bitcoin could be underscored by ongoing discussions about prospective ETF approvals, which could further solidify the cryptocurrency standing within the broader investment community.</p> 
 <h3 class="wp-block-heading" id="bitcoin-vs-traditional-indices-a-shifting-landscape">Bitcoin vs. traditional indices: a shifting landscape</h3> 
 <p>The dynamic between Bitcoin and conventional financial indices such as the S&amp;P 500 and Nasdaq has long captured the attention of financial analysts and investors alike.&nbsp;</p> 
 <p>Historically, especially in 2022, the correlation between these diverse financial instruments was quite pronounced, reflecting a synchronized market behavior.&nbsp;</p> 
 <p>However, 2023 has witnessed a fascinating shift, with statistics illustrating a more complex and fluctuating relationship.</p> 
 <p>As of Aug 16, BTC’s correlation with the S&amp;P 500 dramatically declined to -0.38, compared to a positive correlation of 0.55 observed just a month earlier in July.&nbsp;</p> 
 <figure class="wp-block-image"> 
  <img decoding="async" src="https://lh4.googleusercontent.com/doG6Ho-yp1LnMvZvwgsmr71Ll2ESk7B9qC3WQ3Q3CIWp8E4lhySB6vccFfKL77IOWqPEZl5mwcyL01aUIu8MUS6RpmXwIIIOAUFNO_5VASEHofwbktpcTOsRcXu7-yqKXc6woI_IriURG6xwtZU2CMs" alt="Crypto on alert as Michael Burry goes short on US Markets - 1"> 
  <figcaption class="wp-element-caption">
    BTC vs traditional indices correlation chart | Source: The Block 
  </figcaption> 
 </figure> 
 <p>Concurrently, BTC’s relationship with the Nasdaq underwent a similar divergence, dropping to -0.06 from 0.54 in the same period.&nbsp;</p> 
 <p>But the story is more intricate. The current negative correlation represents a significant increase from June when BTC’s correlation with the Nasdaq was at -0.69 and the S&amp;P 500 at -0.72.&nbsp;</p> 
 <h3 class="wp-block-heading" id="factors-at-play">Factors at play</h3> 
 <p>Several factors may influence the current divergence. The broader economic climate, characterized by rising inflation and central banks’ monetary policies, has caused ripple effects across crypto and traditional finance.&nbsp;</p> 
 <p>For example, central banks’ reactions to inflation might be driving investors towards or away from riskier assets like Bitcoin, resulting in fluctuating correlations with traditional markets.</p> 
 <p>Regulatory changes, particularly the SEC’s crackdown on crypto, the introduction of a new crypto framework for the European Union (EU) under MiCA, and the continued maturation of the cryptocurrency market might have also played a role in this complex interplay.&nbsp;</p> 
 <p>Investors who leverage this evolving landscape must cultivate an agile and informed approach. Understanding the complex dynamics between BTC and traditional indices requires a multifaceted strategy that recognizes the unpredictability of these correlations.</p> 
 <h2 class="wp-block-heading" id="the-road-ahead">The road ahead</h2> 
 <p>As the world grapples with economic uncertainties, evolving regulations, and dynamic market trends, Burry’s move serves as a poignant reminder of global finance’s intricate and interconnected nature.&nbsp;</p> 
 <p>Will this be a masterstroke or a misstep? Only time will reveal the whole story.&nbsp;</p> 
 <p>Meanwhile, the echoes of “The Big Short” linger in the corridors of Wall Street, whispering of possibilities, warning of perils, and tantalizing the minds of investors across the globe.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Big Short’s Michael Burry new prediction could affect crypto markets 
 </div> <span class="google-news-banner__label">Follow Us on Google News</span> 
</div>

Crypto on alert as Michael Burry goes short on US Markets

Table of Contents

TheBitTimes

Other articles published on Aug 16, 2023

New Zealand crypto exchange Dasset files for bankruptcy

FBI seized $1.7m of crypto in three months

XRP Soaring to $3.30 Will Only Be the Beginning, Predicts Analyst

Lakukan Ini Ketika BTC Sideways

Valkyrie Proposes Ether Futures ETF to U.S. Regulator

Donald Trump is Crypto Whale Holding $2.8 Million in Ethereum Wallet, New Financial Statement Shows

Join our free newsletter for daily crypto updates!