Bitcoin, Taiwan Stock Market, and Gold Surging! Founder of World's Largest Bearish Fund Issues "Short" Warning

Bitcoin surged by $1,400 at the closing yesterday, with Taiwan stocks, gold, and other financial assets continuously rising under the drive of hot money. Despite the positive outlook from most investment advisory firms for the future market, renowned bearish investor Jim Chanos has warned that "the current market could become one of the biggest shorting opportunities in history." What is the story behind this?

Is the Long-Awaited Bull Market for Bitcoin Finally Here!?

After months of low volatility for mainstream coins and a frenzy of activity in the altcoin market during the "Altcoin season," Bitcoin and Ethereum, the two major mainstream cryptocurrencies, have seen significant surges. This has once again shifted the market's focus back to the big players in the cryptocurrency market. Bloomberg pointed out in its year-end report that a recent public letter from the Office of the Comptroller of the Currency (OCC) in the United States indicated that both banks and other federally regulated financial institutions can now provide cryptocurrency custody services to the public without requiring special authorization. This move is expected to remove the final barriers for institutional investors.

After Bitcoin surged $1,400 in yesterday's closing, it brought a lot of excitement to the entire cryptocurrency community. Arthur Hayes, the founder of the cryptocurrency derivatives exchange BitMEX, even tweeted yesterday:

"IT'S A FUCKING BULL MARKET ARE YOU READY!!!!!"

However, this excitement is not limited to cryptocurrency investors alone.

Taiwan Stock Market and Gold Showing Strong Trends

Yesterday, with boosts from TSMC and MediaTek, the Taiwan stock market broke through its historical high of 12,682 points on February 12, 1990. The total market capitalization of listed companies reached NT$41.9 trillion, with TSMC's market value breaking the NT$11 trillion mark. Five major securities firms also unanimously see the possibility of the index continuing to challenge 13,000 points. Liao Zhehong, the manager of the Allianz Taiwan Technology Fund, pointed out in the latest investment insights:

"With abundant capital and the promotion of technology-related themes, the Taiwan stock market continues to be firm and upward; coupled with news of possible delays in production plans for major U.S. tech companies, the market expects Taiwan to benefit from optimistic expectations, further driving the Taiwan stock market upwards."

Global central banks have injected over $5 trillion into the market, and this liquidity may continue to drive the Taiwan stock market's bullish momentum. In addition, precious metals like gold and silver have reached historic highs due to market uncertainties and the deteriorating U.S.-China relations, breaking through the $2,000 mark seems very likely.

Prepare for the "Short" Assault

However, not all market participants are optimistic about the future. The massive money printing by governments has driven the financial markets up, but it may also set the stage for a market collapse. Michael Gayed, co-founder and chief investment strategist of the New York asset management firm Pension Partners, who has been bullish on the U.S. stock market since its low in March, has recently made a 180-degree turn in his investment outlook. In a recent statement, he mentioned that the bond market is sending signals of a severe stock market collapse. Michael Gayed said:

"The lack of a substantial rise in short-term bond yields is quite concerning because historically, such short-term trends often occur before significant pressure on the stock market."

On the other hand, Jim Chanos, co-founder of the largest bearish hedge fund Kynikos Associates and a well-known Wall Street bear, also stated that although it's uncertain when it will happen, the current market will be one of the biggest short-selling opportunities in history.

"We are in a fraudulent golden era, the current market environment is filled with FOMO sentiment and Trumpian politics, which is a real fertile ground for people to be idle in the face of truth and for corporate wrongdoers to escape punishment for a long time."

If the financial market does collapse as these "bears" suggest, will Bitcoin once again establish itself as a hedge asset, becoming a safe haven, or will it plummet alongside the U.S. stock market?