Michael Burry, who gained notoriety for shorting the mortgage bond market in 2007, is indicating that the market may be nearing a bottom at the moment. This follows his prior claim that the current situation is comparable to the banking crises of 2003 and 2008. Burry made a comparison between the current situation and the'stupid' risks that led to the demise of the Silicon Valley Bank and Signature Bank.
The trader cited the instance of JP Morgan making a financial commitment during the Knickerbocker Crisis in 1907 as an illustration. The US regulators stepped in to preserve consumer savings in the wake of Silicon Valley Bank's failure. Therefore he made a subliminal allusion to the possibility that the markets would bottom as a result of this intervention, similar to the JP Morgan move. Given the current behavior, does this imply that the price of Bitcoin will continue to rise?
“In October 1907, Knickerbocker Trust failed due to risky bets, sparking a panic. Two others soon failed, and it spread. When a run began on a healthy Trust, J.P. Morgan made a stand. 3 weeks later the Panic resolved & markets bottomed.
A stand was made this past weekend.”
Yet this runs directly counter to his most recent assertion that the financial issue may be resolved rapidly. He said that there was no real threat present.
In an effort to locate purchasers for Silicon Valley Bank, the Federal Deposit Insurance Corp. (FDIC) is now seeking to conduct an auction procedure. Once Bitcoin crossed the $26,000 barrier on Tuesday, the cryptocurrency market began to exhibit an adverse association with the American financial industry. Hence, if a market crash occurs, will Bitcoin surpass $30,000 in the upcoming weeks?