‘Big Short’ investor Michael Burry slams bitcoin as a ‘speculative bubble’ – and warns a crash is coming

‘Big Short’ investor Michael Burry slams bitcoin as a ‘speculative bubble’ – and warns a crash is coming

Bitcoin's price has surged to unsustainable levels and buyers have taken on dangerous amounts of debt, Michael Burry cautioned in a recent tweet.

"$BTC is a speculative bubble that poses more risk than opportunity despite most of the proponents being correct in their arguments for why it is relevant at this point in history," the investor wrote before deleting the tweet as usual.

"If you do not know how much leverage is involved in the run-up, you may not know enough to own it," he added.

Burry is best known for his billion-dollar bet on a housing-market crash in the mid-2000s, chronicled in the book and movie "The Big Short."

The Scion Asset Management chief compared the hype around bitcoin, electric vehicles, software-as-a-service companies, and "meme stocks" like GameStop and AMC to the housing and dot-com bubbles in a tweet on Saturday.

"Fads today (#BTC, #EV, SAAS #memestocks) are like housing in 2007 and fiber/.com/comm/routers in 1999," he said.

The enormous buzz isn't entirely unfounded, Burry said, but he doesn't expect it to last.

"On the whole, not wrong, just driven by speculative fervor to insane heights from which the fall will be dramatic and painful," he said. 

Burry doubled down on his bearish stance in other tweets