Legendary investor Michael Burry, known for the movie ‘The Big Short’, recently made a prediction on Twitter. According to him, it could just be that the gold price could rise sharply as a direct result of all the misery that is currently going on in the crypto market plays. This misery is of course the result of the demise of crypto exchange FTX.
Michael Burry predicts
Burry has a legendary status in the world of investing because he was one of the few people who saw the credit crisis of 2007/2008 coming. Then he went short in the housing market, which turned out to be an extremely lucrative decision. For that reason, Burry is still quite respectable when it comes to his predictions.
This time, however, that prediction is not necessarily positive for the average crypto investor. He expects that it will mainly be gold that can rise sharply in the near future. He had long had the idea that gold could rise in value when major crypto scandals would emerge. That is currently the case, according to Burry.
— Michael Burry Archive (@BurryArchive) November 15, 2022
“Long thought the time for gold would be when crypto scandals merge into contagion.”
Burry’s comments come at a time when gold continues to rise despite prevailing macroeconomic factors, driven by rising inflation and possible further rate hikes. Gold recently hit a 60-day high at $1,780.
crypto drama
We’ve seen quite a few “crypto dramas” over the last few. For example, the crypto market was first really shaken to the bone in May, then Terra (LUNA) went down. This caused a shock wave that pulled several other companies, such as Celsius and Three Arrows Capital, down with it. Again it hit the demise of FTX. It is also not unlikely that this will also have further consequences that are not yet visible at the moment.