Investor Michael Burry warns about market plunge

Investors may be only halfway through a debilitating market downturn that has already hammered stocks and leading cryptocurrencies, according to “Big Short” investor Michael Burry.

Burry, the boss of Scion Capital Management, warned that company earnings are next to suffer from the effects of surging inflation

Federal Reserve interest rate hikes that have weighed on major stock indices and crypto tokens.

“Adjusted for inflation, 2022 first half S&P 500 down 25-26%, and Nasdaq down 34-35%, Bitcoin down 64-65%,” Burry tweeted on Thursday.

“That was multiple compression. Next up, earnings compression. So, maybe halfway there.”

The broad-based S&P 500 closed out its worst first-half performance since 1970. The tech-heavy Nasdaq posted its worst quarter since 2008 and its worst first half on record.

Meanwhile, the price of bitcoin is down more than 70% from its all-time high of $69,000 last November — with several cryptocurrency firms scrambling to weather “crypto winter.”

Goldman Sachs analysts said current market levels have only priced in a minor recession