Two investors, famous for the ‘Big Short’, made evaluations about cryptocurrencies. Michael Burry and Danny Moses said the odds of the US going into a recession are extremely high. After that, investors added that the collapse of cryptocurrencies is not over yet.
‘Big Short’ Moses and Bury warn investors
‘The Big Short’ celebrities Michael Burry and Danny Moses warned investors that the US economy is going into a recession. “What strategy will get us out of this real recession?” Burry wrote in a tweet he shared on Twitter, which he later deleted. she asked. According to Burry, it is inevitable that the US economy will experience a recession. Also, better-than-expected GDP data did not change that. As we reported on Kriptokoin.com, the US economy grew in the third quarter after contracting for two consecutive quarters.
Danny Moses joins Burry on the US economy and cryptocurrencies. Moses says, like Burry, a recession is no longer a possibility. He also underlines that this will affect many things, including Tesla shares. He also stated that earnings will fall due to the S&P 500 and weak consumer demand, similar to Burry. According to him, the economic recession will hit the big companies the hardest and Tesla will suffer the most. Moses, who has short positions at Tesla, said:
“To me, Tesla with its overvaluation represents everything that is wrong with the capital markets. It also seems problematic with its associated investments in a cryptocurrency ‘Dogecoin’.”
Cryptocurrency predictions: “The big crash will continue”
According to Danny Moses, the effects of the FTX collapse will continue to spread across the market. Sam Bankman-Fried’s crypto exchange FTX and Alameda Research filed for bankruptcy in early November. For those who don’t know, FTX had ties to many projects in the crypto market. Therefore, Moses expects the crisis to affect more cryptocurrency projects and even drive them into bankruptcy. The famous investor stated that the crisis will continue to be resolved, but that it will affect many sectors badly. FTX even has ties to media outlets like ProPublica.
However, Michael Burry expects the slump to continue. According to him, the chain of collapse that came with the bankruptcy of FTX will continue to shake the market. However, this will benefit gold, also known as the precious metal. Burry predicts that the cryptocurrency crash will trigger a rise in the price of gold. Meanwhile, Burry is among the celebrities in the crypto world who have been waiting for a drop for a long time. According to what is known, the investor has a large short position in the crypto space. Talking about it, Burry said, “You have no idea how short I am.”
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