Claim BonusMichael Burry Predicts 2008 Level Crash After Crypto Plummets
The cryptocurrency market is crashing hard today. Bitcoin is showing extremely bearish tendencies. It has fallen by more than 5% in the last 24 hours and is currently trading at $18,653. The crypto crash has prompted the expert investor, Michael Burry, to predict a 2008-level economic crisis.
Burry was one of the few experts who predicted the 2008 housing and subprime mortgage crisis.
Why Michael Burry Predicts An Economic Crisis
Burry’s economic crisis prediction is based on multiple factors. His prediction came right after the crash in the crypto market. Over the last 7 days, Bitcoin has fallen by more than 8%. Despite a successful start to the Ethereum merge, ETH prices are showing extremely bearish tendencies. ETH has fallen close to 9% in the last 24 hours.
Other altcoins such as Dogecoin, Solana, Polkadot, MATIC, and Ethereum Classic have also fallen by 8% to 10%.
The crypto crash is only one of the factors fueling Burry’s prediction. He also highlights the crash in the SPACs market. The Special Purpose Acquisition Company market peaked in 2021 but struggled massively thereafter. He also points out the crash in the meme stocks.
One of the most important factors in his prediction is the current inflation crisis. The Consumer Price Index reveals that inflation is at record high levels. The Federal Reserve is engaging in quantitative tightening and interest rate hikes to combat inflation.
In the recent Jackson Hole speech, Fed chair Jerome Powell asked households and businesses to prepare for pain as the Fed fights inflation.
What Comes Next For The Economy
The US economy is going through a tough phase. Not only is it dealing with record inflation, but the threat of a recession also looms. The market will look out for the upcoming CPI release. Back-to-back inflation data showed cooling inflation.
The CME Fed Watch tool is currently forecasting a 75 percent chance of another 75 bps interest rate hike. Another favorable CPI data might temper the Fed’s aggressive stance.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- U.S. SEC Ends Zcash Foundation Probe as Dubai Tightens Rules on Privacy Tokens
- Sui Network Suffers Outage as Mainnet Stalls; SUI Price Flat
- Crypto ETF News: Bitwise Launches Chainlink ETF as Institutional Inflows Return
- Breaking: Supreme Court Delays Ruling on Trump Tariffs; May Decide January 16
- Senators Make Amendments To CLARITY Act On Yield and DeFi Ahead Of Crypto Bill’s Markup
- Bitcoin Price Forecast: How the Supreme Court Tariff Decision Could Affect BTC Price
- Ethereum Price Prediction as Network Activity Hits ATH Ahead of CLARITY Markup
- Robinhood Stock Price Prediction: What’s Potential for HOOD in 2026??
- Cardano Price Prediction as Germany’s DZ Bank Gets MiCAR Approval for Cardano Trading
- Meme Coins Price Prediction: What’s Next for Pepe Coin, Dogecoin, and Shiba Inu Amid Market Rally?
- Standard Chartered Predicts Ethereum Price could reach $40,000 by 2030
