Michael Burry, who is famous for shorting the 2007 mortgage bond market, is once again hinting at a market bottom in the current scenario. This comes after he recently said it has been the same situation now compared to the banking crisis in 2003 and 2008. Burry indicated that ‘stupid’ risks lead to failure, drawing parallel with the current context after the failure of the Silicon Valley Bank and the Signature Bank.
Also Read: Ethereum Shanghai Upgrade: Staked ETH Withdrawals Delayed To May
SVB Rescue To Trigger Market Collapse?
The investor referred to the example of JP Morgan pledging money in the context of the Knickerbocker Crisis in 1907. In the context of the Silicon Valley Bank collapse, the US regulators intervened to protect deposits of the bank’s customers. Hence, he made subtle reference that the markets could bottom due to this intervention, similar to the JP Morgan action. Does this mean the Bitcoin price would further rally given the recent behavior?
“In October 1907, Knickerbocker Trust failed due to risky bets, sparking a panic. Two others soon failed, and it spread. When a run began on a healthy Trust, J.P. Morgan made a stand. 3 weeks later the Panic resolved & markets bottomed.
A stand was made this past weekend.”
This is however, in sharp contrast to his recent prediction that the banking crisis could resolve very quickly. He said there was no true danger with the situation.
Also Read: Shiba Inu Overtakes Litecoin In Mcap, Collab With Paramount Pictures Ahead?
The Federal Deposit Insurance Corp (FDIC) is currently trying to conduct an auction process for finding buyers for the Silicon Valley Bank. Meanwhile, the crypto market took an inverse correlation with the US banking sector as Bitcoin breached the $26,000 milestone on Tuesday. Hence, will BTC breach $30,000 mark in coming weeks if a market collapse materializes?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.