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.
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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.”
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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 post Just In: Big Short Michael Burry Hints At Market Bottom Soon appeared first on CoinGape.
