Micheal Burry may have been the smartest guy in the room during the 2008 GFC, but his trades with respect to Bitcoin havent been nearly as successful.
This is what he posted in June:
Since this post, Bitcoin has risen by roughly 50%, and has also invalidated the whole H&S setup he was billing as the “easiest trade”.
Unfortunately, he seems to have deleted these tweets, afraid of being called out.
Can he post the loss porn from his trading account?
Now he is spreading Tether FUD, linking Tether to Evergrande and suggesting that the crypto markets could blow up because of whats unfolding in China. Not only is there any proof to this claim, its absurd to even suggest this because most of Evergrande debt is Chinese denominated debt, held by Chinese investors, including retail and Chinese provincial governments.
There is a lot of difference between Lehmann and Evergrande. One was a large financial institution, with activities in many major countries and economies. The other is a Chinese property developer with almost zero presence outside mainland China. Anyone equating the both is just indulging in lazy rhetoric to spread fear among their writers. Evergrande is specifically blowing up because of China’s own policy known as “three red lines” – intended to prevent more leverage in the Chinese Real estate industry, they have come up with stern measures that require property developers to deleverage fast. Unfortunately, many wont be able to, and Evergrande is just the first of possibly many other Chinese Real Estate developers that will collapse in the coming months.
Coming to Evergrande, it has only around $20Bn exposure in USD denominated bonds. To put this in context, this is less than what Bill Hwang blew up in 2 days. There is no verifiable proof linking Tether to Evergrande, this story has been doing the rounds spread by anon accounts that Micheal Burry likes to retweet. Not only have Tether also refuted this, Evergrande papers are C- rated, while Tether is holding AA rated papers.
Nic Carter: some anons on twitter just arbitrarily decided tether holds evergrande and it became a standard talking point for industry critics. ppl really b believing any old thing bc they want it to be true