Michael Burry think the market will crash. What it means for crypto?

You know Michael Burry? You should if you have been active in stocks market since before 2008 crash.

He is one of the few people on the planet which predicted the 2008 crash. He even bet against the market and won big. Of course he has not been 100% correct on all his predictions but he is, widely considered as one of the world prominent experts on market prediction.

Recently Mr Burry, have bet more than one billion dollars on market crashing by the end of 2023. I didn't find any interview with him about his new prediction. So his reasoning is unknown to me. But when you bet almost all of your portfolio on something, you have to be pretty damn sure.

I can think of several reasons why someone should expect the market to crash. War in Ukraine, price inflation, alarming drop in public demand for goods (especially luxury goods and services) and unsustainable market practice by big corporates. But in the end, only Michael Burry himself can clarify us about his logics and line of reasoning.

What can I tell you though is this: You better have this in mind going forward. Crypto market been moving aligned with stocks market for some times now. Several study and analysis have shown this. And it is common sense. After all both stocks and crypto market are considered risky investments (granted not nearly at the same level). And the panic in public gonna affect both of them.

What we should do? If we gonna trust Mr Burry (I do, but you might think he is wrong), it would not hurt to have some stablecoin at ready, to buy in the case of a deep market dive. I would suggest to sell anything which is on the profit side and wait to buy low. Also I would suggest following the market and the news more closely, waiting for any sign of a market crash.

A recession will affect everyone, though for people smarter than me it can be an opportunity. There is this one interesting theory which basically claims that crypto in general will benefit from a traditional market failure. I have my doubts though.