- Michael Burry renewed crash warnings as Nasdaq and S&P 500 losses erased over $740B in market value.
- Burry’s semiconductor ETF puts signaled expectations of a possible major tech sector decline.
- Wintermute said Bitcoin’s move above $80K was driven more by leverage than spot demand.
Michael Burry, the investor known for predicting the 2008 housing collapse, returned to the spotlight after renewed warnings about a possible stock market downturn coincided with declines across major U.S. indexes and growing debate over Bitcoin’s recent move above $80,000.
His comments came as the Nasdaq fell 2.11% to 28,715 and the S&P 500 dropped 0.83% to 7,351 during a single trading session that erased more than $740 billion in market value.
Burry’s latest caution focused on artificial intelligence-related stocks and semiconductor companies. Reports showed that he purchased January 2027 put options tied to a semiconductor exchange-traded fund, positioning for a possible 30% decline in the sector. He also compared Nvidia’s current market position to Cisco Systems during the 2000 dot-com era.
Burry Points to Dot-Com Style Valuations
According to market data referenced alongside Burry’s comments, the Shiller CAPE ratio recently reached 40.1, a level previously seen during the dot-com peak. Data also showed that the top 10 Nasdaq stocks posted average gains of 784%, exceeding the 559% gains recorded during the height of the technology bubble in 2000.
Burry stated that the AI rally could face pressure from overbuilt data center infrastructure and weaker-than-expected enterprise demand. He warned that major technology stocks could decline by 40% to 50% if market conditions shift.
At the same time, traders noted that Burry has issued multiple crash warnings since 2008 that did not materialize. His “Sell.” post from January 2023 was followed by a 131% rally in the Nasdaq.
Bitcoin Rally Draws Mixed Signals
The debate around market risk expanded into crypto markets after trading firm Wintermute questioned the strength of Bitcoin’s latest breakout. Bitcoin recently moved above the $80,000 level after spending months trading between $74,000 and $80,000. The cryptocurrency reached $83,000 before easing near $82,000.
Wintermute stated in a May 11 market update that the move appeared driven more by leveraged short liquidations than by sustained spot demand. The firm noted that Bitcoin reclaimed its 200-day moving average and broke through resistance levels, but added that leverage-driven rallies can reverse quickly if momentum weakens.
Related: Bitcoin Price Prediction: BTC Holds Strong Above $80K as Bulls Eye Breakout Toward $86K
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