Michael Burry, the American financier and hedge fund manager known as “The Big Short” spoke on the future of gold in the aftermath of the crypto market decline.
Burry, who is renowned for anticipating the financial catastrophe of 2008, thinks gold may rise to the occasion, particularly in light of recent crypto scandals.
In a November 15 tweet that has since been removed, Burry predicted that gold would climb when crypto-related controversies merged into what he dubbed a ‘contagion.’
Burry’s remarks come as the price of gold continues to rise despite the current macroeconomic concerns, which include growing inflation and the possibility of more interest rate increases. Specifically, gold reached a 60-day high by trading at $1,780.
It is important to note that several scandals have greatly contributed to the decreased prices in the cryptocurrency market. In May, for instance, the market was affected by the Terra (LUNA) ecosystem crisis, which was followed by extensive bankruptcy filings affecting companies such as Celsius Network and Voyager Digital.
However, the largest controversy concerned the FTX cryptocurrency exchange, which had a liquidity crisis and whose former CEO was accused of misappropriating user cash.
According to a July 1 Finbold article, Burry had earlier cautioned investors to brace for a probable stock and cryptocurrency market meltdown in light of the depressed market circumstances. According to the founder of Scion Asset Management, the recent big correction in the values of the S&P 500, Nasdaq, and Bitcoin (BTC) signifies numerous compressions.
Concurrently, as the FTX crisis unravelled, the market was heavily impacted, headed by Bitcoin and other assets that corrected below the critical $20,000 threshold. The crisis diminished investors’ prospects for a market bottom.
At the time of publication, the asset was trading at $16,700 as bears and bulls fought for control of the price trend.
In light of gold’s strong performance, supporters of the precious metal have argued that Bitcoin has a long way to go before it can be called an inflation hedge.
Also Read: Billionaire describes crypto as “mostly fraudulent” and “excellent for kidnappers”
