According to recent SEC filings, a hedge fund led by Michael Burry, famous for correctly predicting the epic “Big Short” of the US housing market in 2008, has bet more than $1.6 billion on short positions against the US stock market. On-chain data analyses how Bitcoin prices could react to a major wobble in the stock market.
The latest CPI data from the US Bureau of Statistics on August 10 shows that the inflation growth rate has cooled. However, investors remain convinced that the Fed is still far from significant rate cuts.
In effect, some big players have started to place large bets against the stock market.
Micheal Burry’s hedge fund Scion Asset Management has bought $866 million and $739 million in Put Options against the S&P 500 and Nasdaq 100, respectively. In simple terms, a Put Option represents the right to sell an asset at a particular price in the future.
Similarly, a US Senator, Tom Carper, stirred controversy earlier this month. A recent Beincrypto publication revealed his $30,000 investment in ProShares Short QQQ (PSQ) — an inverse exchange-traded fund (ETF), betting against the Nasdaq-100 index.
With Wall Street bigwigs and politically exposed investors taking out bets against the stock market, interest in the potential impact on crypto prices in the coming weeks is rife.
Bearish Trends Have Sparked a Correlation Between US Stocks and Crypto Market
Bitcoin (BTC) exhibits no statistical relationship with Nasdaq 100 and S&P 500 indexes, according to a recent report for data analysts platform BlockScholes. This means the stock market no longer has a causal effect on the crypto markets, as initially observed years ago.
However, recent bearish data
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Author: Ibrahim Ajibade
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