The famous hedge fund manager Michael Burry expressed an opinion that was at best contradictory on Monday (15). When talking about the cryptocurrency market, Burry called it “the biggest bubble I’ve ever seen.” However, the manager claims that he does not go short, that is, he does not bet against the market.
“I have never opened any short positions in any cryptocurrency. This is the third bubble I face in the market and it’s the biggest one. During this period I learned a thing or two. 30-year treasury bonds on the other hand…” said Burry.
Burry rose to fame in 2008 after predicting the unfolding financial crisis. He even put the capital of his manager, Scion Asset Management, at risk because of his analyses. However, Burry proved right and managed to make money after the crisis broke out. His character was one of the protagonists of the movie A Grande Aposta, in which he was played by actor Christian Bale.
Volatility makes it difficult to bet against
But why does Burry classify cryptocurrencies as a bubble and not bet against the market? After all, if he’s right, the manager can repeat the big bet (no pun intended) he made in 2008 and make a lot of money. The problem, in Burry’s view, is that he doesn’t understand how to value this market himself.
“How can you short a cryptocurrency? Do I need to offer a guarantee? Is there a small discount? Can the position be squeezed (experience a sudden increase in price)? In such highly volatile situations, I’m tempted to think it’s best not to go short. But I’m thinking out loud here,” wrote Burry.
In other words, even though Burry believes he has fundamentals to bet against the market, he understands that the strong volatility can make this bet take a long time to be paid. In this sense, it seems that the manager is seeking to avoid the problems his fund faced before the outbreak of the 2008 crisis.
At the time, Scion nearly lost the capital of all of its customers, who considered Burry’s bets “crazy.” The funds faced a series of slumps that caused customers to place orders for withdrawals almost daily.
This was the second time Burry had warned of a large bubble. The first alert came in October, when he alerted not just to cryptocurrencies, but to the entire market. In Burry’s view, the next financial meltdown will be the “mother of all crises.”
Manager reveals portfolio of short positions
If Burry doesn’t go short against cryptocurrencies, other markets aren’t viewed with the same caution. The Zerohedge portal revealed a number of positions that Burry revealed before hiding his Twitter account.
The manager’s official profile (@michaeljburry) is eventually deactivated and then returned to active. Burry treats his portfolio in the same way, revealing and occasionally hiding his bets. The last time he revealed his investments was two quarters ago, and bets included inflation and even Tesla.
Burry even bought US$ 534 million in put options from Elon Musk’s company, which corresponded to just over 800,000 options against the company. This was Burry’s highest position in the first quarter.
Also notable was Burry’s aggressive positioning in inflation-backed securities. Also in February, Burry warned that the United States could experience something akin to the hyperinflation of the Weimar Republic, which wrecked Germany’s economy in the 1920s.
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Here Are The 10 Best Performing Cryptocurrencies in November
November was a very tumultuous month with a lot of volatility. Here are the top 10 performers out of the top 100 projects by market capitalization.
November was a month full of ups and downs. The total cryptocurrency market capitalization remained flat at around $2.65 trillion, but Bitcoin’s price is down a little more than 6% throughout the same period.
This means that altcoins stepped up, which can also be confirmed by the declining BTC dominance. Bitcoin’s share relative to that of the entire market is down about 3% in a month.
With this in mind, we’ve decided to take a look at the top 10 best-performing cryptocurrencies from the top 100 projects by means of total market capitalization.
10. WAX (WAXP)
Data from TradingView reveals that WAX opened November’s candle at $0.407 and closed it at $0.68 for a total increase of 67%. It was a rollercoaster month for the cryptocurrency, which peaked at just slightly below $1.
WAX is a blockchain project released in 2017, and it’s designed to make e-commerce transactions faster and safer for everyone involved.
9. Voyager Token (VGX)
Voyager Token is up a considerable 83% in the past 30 days and is currently trading at $5, up another 20% for the past 24 hours alone.
Interestingly enough, VGX is one of the tokens that reached their all-time high level during the ICO peak in 2017 – its ATH sits at $10 – exactly 100% from where it’s currently trading at.
The core concept behind the Voyager Token is to provide cryptocurrency brokerage services to investors through a secure access point when it comes to trading. It’s built towards both retail and institutional investors.
8. Avalanche (AVAX)
Avalanche is undoubtedly one of the hottest projects throughout the past couple of months, not just in November. Many in the industry are praising it for the quick transactions and scalability, even though the network experienced a huge load that it couldn’t immediately handle, and the project’s CEO asked the community for understanding as it was the first time something of this kind happened to them.
In any case, the hype around Avalanche’s growing ecosystem also had a positive effect on its price, which is up 90% in the past 30 days.
The coin painted a fresh all-time high at $146.22 and is currently trading 14% below it for total gains of 90% in the past month.
7. Livepeer (LPT)
Livepeer is an open-source protocol and aims to become an economically efficient alternative to some of the existing centralized solutions when it comes to broadcasting.
In November, the project saw considerable growth in terms of market cap as its LPT token is up just over 100%. At the time of this writing, LPT is changing hands at $53.25 for a 2% daily loss.
Its all-time high came on November 9th, 2021, and it stands at $100.24, meaning that it’s currently trading 47% below it.
6. IoTeX (IOTX)
IoTeX has the purpose of empowering open economics for machines and, in a sense, creating an ecosystem where users and machines can interact through free will, guaranteed trust, and under proper incentives.
Its native token, IOTX, is up 122% in a month, and it currently sits at $0.1561 with a total market capitalization of almost $1.5 billion.
IOTX’s all-time high also came on November 13th, when it peaked at $0.2611, meaning it’s trading at around 40% below that.
5. Kadena (KDA)
Kadena has grown to be the 65th largest project with a total market cap of about $2.7 billion. This comes after a month filled with excitement which saw the cryptocurrency increase in value by more than 150%.
At the time of this writing, it’s trading at around $17. It managed to hit an all-time high on November 11th this year – at $28.25, according to CoinMarketCap.
4. The Sandbox (SAND)
The Sandbox is also one of the most commonly discussed projects in November, and it came to prominence largely thanks to the massive hype around play-to-earn and metaverse projects.
Thanks to this, it has become one of the biggest projects in the industry and even managed to chart a new all-time high at $8.51. It is trading 23% below this point at the time of this writing, but it’s still up 203% in the past month.
3. CryptoCom Coin (CRO)
CryptoCom was the large-cap that took the market by storm in November. It’s up a whopping 260% during the month, and it is currently changing hands at $0.76.
It peaked at $0.97, which is also the current all-time high level of the cryptocurrency. The epic run in November was seemingly propelled by the $700 million deal the company struck with the famous Staples Center in Los Angeles. The venue, which is also home to the LA Lakers, will be renamed to CryptoCom Arena.
2. Loopring (LRC)
Loopring’s LRC is up more than 270% in the past 30 days. It is currently trading at around $2.8, and its all-time high was reached on November 10th – at $3.83.
LRC is an ERC20 token, and it underpins the Loopring protocol, which is designed to build decentralized cryptocurrency exchanges.
1. Gala (GALA)
The absolute winner and top performer during November from the top 100 cryptocurrencies by market cap is none other but GALA.
It’s up almost 600% in the past 30 days and sits on a market capitalization of $4.4 billion on the 44th spot. At the time of this writing, GALA trades at $0.63, whereas its all-time high was achieved just a few days ago, on November 26th, at $0.83. It’s interesting to see if the cryptocurrency will take another shot at it any time soon.
Facebook’s Head of Crypto Quits Weeks After Meta Rebranding
Facebook, now known as Meta, has only begun its development, post the commencement of the company’s rebranding. However, shockingly, one of the core team members, i.e., the head executive of the cryptocurrency department, David Marcus has announced his departure from the company by the end of this month.
Marcus took to Twitter yesterday, unveiling the end of his seven-year long tenure at Meta. The market is raging with speculations that Marcus’ exit is because of Meta’s Hit-and-Miss, to launch its own cryptocurrency for cross border online payments via Facebook products.
Personal news: after a fulfilling seven years at Meta, I’ve made the difficult decision to step down and leave the company at the end of this year. (1/7)— David Marcus (@davidmarcus) November 30, 2021
Did Crypto Executive Quit in lieu of Failure to Launch Native Crypto?
After serving as PayPal’s President, Marcus joined Meta in 2014. He worked at Meta’s popular online messaging application, Messenger, and eventually moved on to the financial department of the company. Under Marcus’ leadership, Meta announced two cryptocurrencies one after another. Both, the Libra blockchain currency and the Calibra digital wallet were expected to go live in the year 2020. However, neither succeeded in lieu of global backlash from policymakers and regulators. At present, Meta’s digital currency Diem, is run by an independent entity, separate from its digital wallet project, Novi. Furthermore, currently serving as the VP of product at Novi, Stephane Kasriel, will now be replacing Marcus as the head of crypto at Meta.
“While there’s still so much to do right on the heels of launching Novi — and I remain as passionate as ever about the need for change in our payments and financial systems — my entrepreneurial DNA has been nudging me for too many mornings in a row to continue ignoring it…I find comfort and confidence in knowing that they will continue to execute our important mission well under @skasriel’s leadership, and I can’t wait to witness this from the outside.”, Marcus tweeted in the thread containing his exit from Meta announcement.
Towards the end of October, Facebook, the world’s largest social media platform, confirmed rebranding after changing its name to Meta. The name change was in line with the company’s focus on building the world’s first true metaverse.
Police seize cryptocurrencies from financial pyramid suspects in Goiás
The Civil Police of the State of Goiás (PCGO) launched an operation with the objective of dismantling a supposed financial pyramid scheme that promised high returns with investments in cryptocurrencies and other investments.
In “Operation Octopus”, held last Friday (27), agents carried out the first seizure of cryptocurrencies “on site”.
In a statement, the PCGO informed that it had effected the judicial blockade of approximately R$ 20 million from the gang.
“Operation Octopus” seizes cryptocurrencies
In all, the police carried out 15 kidnappings of values in the investigated accounts at conventional financial institutions and cryptocurrency exchanges.
PCGO did not specify in the statement the amount seized in cryptocurrencies. But the delegate responsible for the case, Webert Leonardo, told the G1 that the value was R$ 2 thousand.
Although the amount is low, especially considering the total confiscated, the seizure was cause for celebration by the corporation.
That’s because the action will help in the modernization of investigation and apprehension techniques in virtual financial crimes.
“We seize and convert virtual values directly at the stage of the stagecoach, through intelligence knowledge breaking account passwords. The amount is converted to a judicial account linked to the investigation”, explained the delegate.
Leonardo also pointed out that this seizure is different from a court account blocking. After all, if the police don’t act quickly, suspects can run out of money in no time.
In addition to seizing the cryptocurrencies, the agents served 4 temporary arrest warrants, 11 search and seizure warrants and 2 hijackings of luxury vehicles. Police also found electronic devices, documents, cash and three firearms.
About the supposed financial pyramid
According to the investigations, which have lasted three months, the target group of the operation – whose name was not revealed – worked in the city of Bela Vista (GO).
The police discovered that the criminal organization had an organized structure and a division of tasks. And “company” attacked on two fronts: intermediation of bets on sports games and investments in cryptoactives.
In both cases, the group promised a certain profit of 50% per month at the beginning of activities (first half of 2020) and 30% in the most recent period.
The police action was supported by the PCGO’s Anti-Money Laundering Technological Laboratory, as well as by the Cryptoactive Operations Center of the General Coordination for Combating Organized Crime of the Ministry of Justice and Public Security and the PCGO’s Intelligence Operations Management .
It was due to the support of the nucleus focused on cryptoactives that the police were able to track financial resources and link people.
The accused can be held liable for the crimes of criminal organization, money laundering and crimes against the popular economy.
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