If you don’t know his name, you may have heard of a book by Michael Lewis, or watched a movie called “The Big Short,” whose story is inspired by investor Michael Berry. Today, he predicts that the “mother of all failures” is coming, and Bitcoin and cryptocurrency will be under attack.
Is it an eve of a collapse?
Doctor Michael Berry is the founder of the hedge fund Scion Capital, and became known for being one of the first to warn and take advantage of the subprime mortgage crisis (the famous subprime lending), which caused the stock market to rise, crash, and the great recession from 2007 to early 2010.
His story was featured in a book by Michael Lewis about the real estate bubble and the financial crisis: “Big Short: Inside the Doomsday Machine”.
The book was adapted by Adam McKay to create an Oscar-winning film starring Michael Berry as actor Christian Bale.
When Michael Berry says something, everyone listens very carefully, and he sometimes communicates to his fans and traders on his Twitter account, called Cassandra. But he has an annoying tendency to delete his tweets.
On June 17, 2021, Berry posted several messages on his Twitter account, very pessimistic messages for the future, predicting the start of a major financial crash with cryptocurrency.
“All this hype and speculation specifically attracts and lures people before the mother of all crashes comes.
When the crypto market falls by trillions of dollars, or “memes” bring tens of billions of losses, it can only be compared with losses on the scale of entire countries”, he wrote on Twitter.
Therefore, the investor pays special attention to Bitcoin and cryptocurrencies, warning about the misuse of leverage in trading.
Easy access to these options and trading tools for individual traders can indeed lead to colossal losses for individuals with no trading experience and hoping to make a lot of money with this speculative leverage.
With the increasing spread of cryptocurrencies, more and more people are starting to trade cryptocurrencies in the hope of earning extra income or getting rich.
Given that 90% of traders lose money in trading, this figure can only be higher when it applies to people with no previous experience.
The current correction in the price of Bitcoin BTC, which began in May last year, is due to the excessive use of leverage in trading by individuals who were liquidated after the sharp drop in the cryptocurrency market.
The retail phenomenon can also be found in stock trading, for example, with the euphoria that led to a sharp explosion in the stock price of video game seller GameStop.
Thus, Berry sees them as indicators and the beginning of “the biggest speculative bubble of all time.”
Should we fear the impending collapse of the crypto market?
If Michael Berry was right about the stock market crisis caused by the bursting of the mortgage bubble, but critics say it’s impossible to predict when another major financial crisis might break out in the future.
However, Berry highlights the elements that could actually trigger the next stock market crash, as well as a major drop in Bitcoin and cryptocurrency prices.
He sees stock market trends that don’t seem well-founded, and therefore cause alarm in the future, just as he was able to detect before the major crisis of 2008.
Thanks to his reputation, Michael Berry has clearly attracted attention after his recent frightening and very pessimistic tweets for the future. It remains to be seen whether his predictions will actually come true in the future, but he is not the first to talk about a complete collapse of the crypto market. And not because it is a speculative bubble but because Bitcoin is originally a project of globalists, and is aimed at pumping the money supply from the world’s population.
But time will tell.