Crypto Market News: The US regional banking crisis showed a disparity between the big Wall Street banks and smaller banks in terms of stability. Overall, the collapse of Silicon Valley Bank and Signature Bank had a blanked effect on the U.S. banking stocks, as customers withdrew in fear of further contagion effects. While fear and uncertainty dominated the market sentiment, some investors looked at it as a great buying opportunity. Meanwhile, the crypto market is facing a downturn after the regional banks seem less fragile and the U.S. Fed’s rate hike decision is still under over the next few months.
Also Read: Balaji Predicts US Election 2024 To Be Fought Over Bitcoin
Earlier, CoinGape reported that popular investor Michael Burry bought shares of distressed banks like First Republic Bank, PacWest Bancorp, Western Alliance Bank and New York Community Bancorp. At that time, these stocks were trading at lowest levels, and any significant recovery would have meant healthy gains. The sentiment was also conducive for buying at the low prices as fears over further bank collapses rose.
Michael Burry Portfolio Revealed
According to an annual shareholder report of Burry shared by Compounding Quality, the big short invested in New York Community Bancorp, Capital One, Wells Fargo, Western Alliance Bancorp, Huntington Bancshares, PacWest and First Republic Bank. Among his other major stocks in his portfolio are JD.com and Alibaba Group which form the highest percentage shares in his portfolio, besides energy stocks Coterra Energy and Devon Energy, the report said. He also reportedly bought the shares of healthcare and insurance company Cigna Group.
In the wake of the recent US banking crisis, Burry predicted yet another market bottom scenario in March 2023, similar to his shorting the 2007 mortgage bond market.
Also Read: XRP News: SEC Could Still Win Ripple Lawsuit Says Former Ripple Executive
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.
