BlocksInform
Just a few hours before the interest rate decision of the US Federal Reserve today, legendary trader Michael Burry published a warning for the financial market that could affect Bitcoin and crypto as well. The “Big Short” investor tweeted a single word today, “Sell.”
Sell.
— Cassandra, British Columbia (@michaeljburry) February 1, 2023
Burry is known as one of the few experts to have predicted the subprime crisis between 2007 and 2010. He short-circuited the mortgage bond market in 2007 by trading CDOs and made substantial profits.
In January of this year. 23, Burry shared a chart of the market from the dot-com crash on Twitter and said “maybe.” It appeared to revolve around a dead cat rebounding, or the S.
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 could also be sending a warning 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 dietary decision may be a knife.
However, it is also important to note that Burry has not always lived up to its previous expectations. In fact, Burry was wrong more often than right in the past, as a Reddit user revealed.
Bitcoin and Crypto Bulls ought to be forewarned.
While 98.4% expect the Fed to continue to slow the pace of interest rate hikes today, according to FEDWatch, the market is in a vulnerable position.
If the Fed increases by an astonishing 50 basis points and expresses concerns about "sticky" inflation, this could mean a massive collapse for the s.
And there is an increasing number of voices that are not yet frozen. According to Bloomberg, hedge funds have accumulated record short positions in US Treasury bills prior to fomc. They are looking for higher rates of return, higher debt and higher interest rates.
However, there is also strong support for an increase of 25 basis points. Fed mouthpiece and Wall Street Journal chief economics correspondent Nick Timiraos said in a tweet yesterday that “the ECI report is helpful for the Fed, which is on track to raise rates by 25 basis points this week.”
He went on to say that “a slower pace of wage growth could ease concerns that wage inflation will settle at a frighteningly high level for a central bank targeting 2% inflation.”
At the time of the press, the Bitcoin price was at $21.113, remaining relatively steady with the FOMC meeting at a few hours.
