Investor Michael Burry Takes Significant Short Positions Against Market Indices

One sentence summary – Investor Michael Burry has taken significant short positions against two major market indices, investing $890 million in puts against the S&P 500 and $740 million in puts against the NASDAQ-100 Index, which now make up 93% of his portfolio; meanwhile, Bitcoin has experienced an 11% decline in the past week and is currently trading at around $26,000, with short-term holders potentially facing further declines.

At a glance

  • Michael Burry has taken a significant short position against two major market indices.
  • He has invested $890 million in puts against SPY, an ETF that tracks the S&P 500.
  • Burry has also invested $740 million in puts against QQQ, an ETF that follows the NASDAQ-100 Index.
  • These short positions now constitute 93% of his entire portfolio.
  • Bitcoin has experienced an 11% decline in the past week and is currently trading at around $26,000.

The details

Michael Burry, a well-known investor, has taken a significant short position against two major market indices.

He has invested $890 million in puts against SPY, an ETF that tracks the S&P 500.

Burry has also invested $740 million in puts against QQQ, an ETF that follows the NASDAQ-100 Index.

These short positions now constitute 93% of his entire portfolio.

Short Positions Against Market Indices

Some cryptocurrency enthusiasts believe that Bitcoin could serve as a hedge if a market crash occurs.

The information on Burry’s short positions may have been sourced from a 13F report dated June 30.

This suggests that the trades may have been initiated earlier and possibly exited by now.

The reported figures may represent the notional value of the shares underlying the option contracts, not the value of the contracts themselves.

There may be potential miscalculations in the reported market value of the options, confusing the cost of the options with the value of the underlying shares.

Investors are advised to seek comprehensive information and context regarding Burry’s moves.

Bitcoin’s Decline and Market Outlook

In other market news, Bitcoin has experienced an 11% decline in the past week.

It is currently trading at around $26,000.

Short-term holders of Bitcoin who were already facing unrealized losses before a recent deleveraging event in BTC futures may face further declines.

These declines could potentially reach $20,000.

The market for Bitcoin is currently lacking momentum.

Bulls are attempting to defend the support/resistance level at $25,000.

The Relative Strength Index (RSI) suggests that Bitcoin is likely to continue dipping.

The RSI is currently at its lowest level since March 2020.

The Moving Average Convergence Divergence (MACD) indicator on the daily chart also indicates a bearish outlook for Bitcoin.

Glassnode, an on-chain analytics firm, reports that the recent sell-off in the BTC futures market was the largest in 12 months.

Short-term holders now hold 88.3% of their supply in unrealized loss.

Investors who bought Bitcoin at $32,000 are now facing losses.

This adds to the supply that was already in profit.

Glassnode warns that if short-term holders continue to buy near the top, the market could become top-heavy for extended periods.

This could potentially lead to more violent downtrends.

Despite the negative outlook, a trader and analyst named @AltcoinSherpa encourages investors to stay the course.

He advises focusing on surviving the bear market, as the worst has already happened with Bitcoin dropping from $70,000 to $15,000.

Rapid Liquidations and Market Downturn

In the cryptocurrency market, $1 billion in liquidations occurred in the past 24 hours.

90% of these liquidations took place within the last 12 hours.

This indicates a rapid and severe market downturn.

This event marks one of the most significant two-sided liquidation events in at least the past four months.

Bitcoin (BTC) has experienced significant volatility and is currently trading at $26,439.

The decline in Bitcoin’s price can be attributed to the massive liquidations as traders and investors exit their positions.

The current situation is unique and reminiscent of extreme market volatility seen in the early days of the cryptocurrency industry.

External factors such as global economic uncertainties, regulatory pressures, and macroeconomic indicators contribute to the massive correction.

Internal dynamics of the cryptocurrency market, including high leverage trading and speculative behavior, amplify the effects of external factors.

Bitcoin’s price decline and massive liquidations indicate a market in distress.

The cryptocurrency industry is known for its resilience.

The long-term potential and value proposition of cryptocurrencies remain intact.

This is a comprehensive summary of the available facts and information about the news story.

Article X-ray

A bear silhouette standing against a rising line graph.

This section links each of the article’s facts back to its original source.

If you have any suspicions that false information is present in the article, you can use this section to investigate where it came from.

u.today
– Michael Burry has taken a significant short position against two major market indices.
He has invested $890 million in puts against SPY, which tracks the S&P 500, and $740 million in puts against QQQ, an ETF following the NASDAQ-100 Index.
These short positions now make up 93% of his entire portfolio.
– Some crypto enthusiasts believe that Bitcoin could act as a hedge if a crash occurs.
The data on Burry’s short positions may be sourced from a June 30 13F report, suggesting the trades may have been initiated earlier and possibly exited by now.
The figures reported may represent the notional value of the shares underlying the option contracts, not the value of the contracts themselves.
– There may be potential miscalculations in the reported market value of the options, confusing the cost of the options with the value of the underlying shares.
– It is important for investors to seek comprehensive information and context regarding Burry’s moves.
coingape.com
– Bitcoin has experienced an 11% decline in the past week and is currently trading at around $26,000.
– Short-term holders of Bitcoin who were already facing unrealized losses before a recent deleveraging event in BTC futures may face further declines, potentially reaching $20,000.
The market for Bitcoin is currently lacking momentum, with bulls attempting to defend the support/resistance level at $25,000.
The Relative Strength Index (RSI) suggests that Bitcoin is likely to continue dipping, as it is currently at its lowest level since March 2020.
The Moving Average Convergence Divergence (MACD) indicator on the daily chart also indicates a bearish outlook for Bitcoin.
– Glassnode, an on-chain analytics firm, reports that the recent sell-off in the BTC futures market was the largest in 12 months, and short-term holders now hold 88.3% of their supply in unrealized loss.
– Investors who bought Bitcoin at $32,000 are now facing losses, adding to the supply that was already in profit.
– Glassnode warns that if short-term holders continue to buy near the top, the market could become top-heavy for extended periods, potentially leading to more violent downtrends.
Despite the negative outlook, a trader and analyst named @AltcoinSherpa encourages investors to stay the course and focus on surviving the bear market, as the worst has already happened with Bitcoin dropping from $70,000 to $15,000.
u.today
– $1 billion in liquidations occurred in the cryptocurrency market in the past 24 hours
– 90% of these liquidations took place within the last 12 hours, indicating a rapid and severe market downturn
– This event marks one of the most significant two-sided liquidation events in at least the past four months
– Bitcoin (BTC) has experienced significant volatility and is currently trading at $26,439
– The decline in Bitcoin’s price can be attributed to the massive liquidations as traders and investors exit their positions
– The current situation is unique and reminiscent of extreme market volatility seen in the early days of the cryptocurrency industry
– External factors such as global economic uncertainties, regulatory pressures, and macroeconomic indicators contribute to the massive correction
– Internal dynamics of the cryptocurrency market, including high leverage trading and speculative behavior, amplify the effects of external factors
– Bitcoin’s price decline and massive liquidations indicate a market in distress
– The cryptocurrency industry is known for its resilience, and the long-term potential and value proposition of cryptocurrencies remain intact.

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