Red Alert from Michael Burry and Warren Buffett: Market to Crash?

Updated

November 5, 2025

Gambar Red Alert from Michael Burry and Warren Buffett: Market to Crash?

Jakarta, Pintu News – Global financial markets appear to be on the brink of crisis. The latest analysis from two legendary investors, Michael Burry and Warren Buffett, shows that there are symptoms that cannot be ignored. These two luminaries, known for their accurate predictions in the past, are again giving warning signals that the market may be about to suffer a major setback!

Michael Burry’s “Wildest” Strategy

Michael Burry, famous for his accurate predictions before the 2008 financial crisis, is making waves again with his latest investment strategy. In his latest 13F filing, Burry indicates that he has taken an aggressive short position, with put contracts extending to 2026 and 2027.

Michael Burry 13F

This is the wildest (and early by more than a week) 13F I have maybe ever seen.

Pure bubble shorting, Burry is going after the next 2008.

I respect burry, however let’s remember it took 2-3 years from the moment he started shorting via CDS until 2005 until… pic.twitter.com/0PUa1mQJcl
— THE SHORT BEAR (@TheShortBear) November 3, 2025

This indicates that Burry expects a major market decline in the next two to three years. According to market analyst Kashyap Sriram, Burry had started shorting the market in the first quarter of 2025, just before the sudden market crash in April that wiped out billions of dollars of equity value.

This strategy shows that Burry believes that the current market is too dependent on the euphoria of artificial intelligence, similar to his position on the subprime crisis almost two decades ago.

Warren Buffett’s Classic Warning

The Buffett Indicator (Total US Market Value/GDP) is a ballpark measure of how expensive stocks are at any one point in history…

It’s now sitting at ~234%.
A new all-time high.

“If the ratio approaches 200%, as it did in 1999, you are playing with fire.” – W. Buffett pic.twitter.com/D8zyI4GFln
— Geiger Capital (@Geiger_Capital) November 3, 2025

On the other hand, Warren Buffett uses his long-reliant evaluation metric, the Buffett Indicator. Currently, the indicator is showing the strongest warning since the dot-com era, with the ratio of US total stock market capitalization to GDP reaching 233.7%. This is a new record high and signals that US equities are extremely overvalued compared to the real economy.

History has shown that these conditions are often followed by sharp corrections or bear markets that last for several years. With this indicator, Buffett reiterates his concern that the market may be heading in an unsustainable direction.

Crypto Already Feeling the Impact

🚨CRYPTO DUMPS $790 BILLION SINCE OCT HIGHS!

Total market cap has fallen from $4.22T to $3.43T, down ~18% in just 4 weeks.

We’re back where we started 2025.🔥 pic.twitter.com/IObVNCgy3P
— Coin Bureau (@coinbureau) November 4, 2025

The crypto market seems to be the first victim of this increasing risk aversion. According to Coin Bureau, since October, the crypto market value has been erased by $790 billion, with the total market capitalization dropping from $4.22 trillion to $3.43 trillion. This erases all the gains that have been made since the beginning of 2025.

Crypto analyst Ran Neuner warned that a small drawdown in equities could trigger further losses in digital assets. With Burry increasing his short position and Buffett’s indicator showing a red alert, the market is facing increasing pressure towards the end of the year.

Conclusion

As the world’s leading contrarian investors begin to go bearish, it may be wise to heed their warnings before the bubble bursts. With the market situation becoming increasingly volatile, it is important for market participants to remain vigilant and conduct in-depth research before making investment decisions.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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