'Big Short' investor Michael Burry teases a bet against crypto - and warns market speculation has reached historic levels

Michael Burry. Astrid Stawiarz/Getty Images
Michael Burry may place a bet against cryptocurrency.

Twitter user "The Big Short" asked how he could place a bet against digital coins.

Burry warned that market speculation may have reached unimaginable levels.

Michael Burry, who bet against the housing bubble to make his fortune, now has his sights set on a new target: cryptocurrency.

"Ok, I've never done this before. How do you shorten a cryptocurrency?" He said it in a now-deleted Twitter message this week. Do you need to borrow money? Is there a rebate for borrowers? Is it possible to squeeze the position and call in?

Burry's massive bet against subprime mortgages is immortalized in the book and movie "The Big Short." He stressed that he was not considering taking a position against crypto.

He tweeted, "In such volatile circumstances, I tend to think that it's best to not to shorten, but I'm thinking loud here."

Scion Asset Management boss and frequent tweet deleter, has recently closed his Twitter account to new users. To drum up interest, he cited the thousands of crypto and meme-stock zealots as well as bots who commented on his tweets.

Burry tweeted, "Crypto/Meme pumpers and bots reply to large accounts in huge quantities for the promotion." It is possible to delete tweets and get it back. You can discourage them by going private.

He continued, "But it's amazing, this religion of fake and real people." "The speculation is probably the greatest in history."

Burry has repeatedly criticised crypto this year. Burry has repeatedly criticized crypto this year. He dismissed the shiba Inu coin as "pointless" and ridiculed the surging price of dogecoin. He also warned that bitcoin is a "speculative boom" that's fuelled by high levels of leverage and susceptible to government crackdowns.

The fund manager also said that the hype around bitcoin and meme stocks was similar to the mid 2000s housing boom and dot-com bubble. He said they have been driven by speculative enthusiasm to ridiculous heights, from which the fall would be dramatic and painful.

Burry, aside from his housing bet is also known for investing in GameStop, inadvertently opening the way for the January stock squeeze and the wider meme-stock frenzy this past year. Burry's most recent portfolio update revealed that he was betting against Elon Musk and Cathie wood's Ark Invest.