Star investor and real-life prototype of Christian Bale's character in "The Big Short," Michael Burry, made a surprise statement on his Twitter account, admitting that his call to sell in early February was wrong. As Burry explains in his next tweet, the markets have not seen such "buy the dip" generation since the 1920s.
I was wrong to say sell.— Cassandra B.C. (@michaeljburry) March 30, 2023
To illustrate his point of view, the analyst cites a chart from the Bloomberg terminal showing the S&P 500's average return following down days by year. As can be seen from the chart, 2023 has already become the second best year for the dip-buying strategy, behind only 2020 at the moment. "Congratulations," Burry concludes his admission.
Michael Burry and cryptocurrencies
If in early February Burry's call was greeted by the crypto market with a rise of more than 2%, causing the analyst to delete his Twitter account, this time the reaction is less enthusiastic. It would be quite ironic if, after Michael Burry as a well-known financial market skeptic turned into a bull, the market became bearish again.
As for now, Bitcoin (BTC) continues to trade near its local high, set today in an area above $28,000. The dominance of the market's main cryptocurrency is also at this year's highs, 47.8%. The eyes of many crypto market participants are now focused directly on these two charts, waiting for liquidity to start flowing into altcoins and for the full-fledged alt season to begin.