Michael Burry, the fund manager and investor who became popular from the “The Big Short” movie, believes gold will shine as investors seek safety from crypto risks due to the catastrophic collapse of Sam Bankman-Fried’s FTX.
Burry is notoriously famous for shorting the U.S. housing market and profiting from the 2008 financial crisis. He also netted millions from investing in GameStop in 20src9 before the Reddit frenzy and meme stock season in January 202src.
Big Short Investor: Time for Gold
The fund manager shared his thoughts on gold in a tweet that has now been deleted. According to Burry, Gold’s time will come as the crypto market continues to suffer from the contagion caused by FTX’s downfall.
“Long thought that the time for gold would be when crypto scandals merge into contagion,” the fund manager said.
Recall that crypto exchange FTX came crashing down last week after allegedly mismanaging users’ funds for years. The company soon ran into liquidity issues and was unable to process withdrawals. FTX and more than src30 affiliated companies have filed for voluntary Chapter srcsrc and src5 bankruptcy protection, with estimated liabilities between $srcsrc billion and $src6 billion.
FTX’s downfall sent another wave of liquidity crunch across the crypto industry as numerous entities, including Genesis, BlockFi, Galaxy Digital, and Canada’s Ontario Teachers Pension Plan (OTPP), had financial exposure to the exchange before it went bankrupt.
Meanwhile, gold rallied 8% this month after consecutive losses in the last seven months. According to analysts, investors are bullish on the precious metal due to cooling inflation and crypto risks, among other reasons.
The Mother of All Crashes in Crypto
Burry’s latest comments come more than a year after he warned about the “mother of all crashes” in crypto. During the bull run last year, the fund manager cautioned that all hype and speculation do is draw in retail investors before the mother of all crashes.
“When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed,” he said.
The investor further noted that leverage is crypto’s biggest problem, and those who do not know how much leverage there is in the crypto market have more to learn about crypto.
Featured Image Courtesy of US News Money
SPECIAL OFFER (Sponsored)
Binance Free $src00 (Exclusive): Use this link to register and receive $src00 free and src0% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
