Legendary American star investor Michael Burry rarely reported for the yellow precious metal. However, in his view, the crypto chaos offers a good foundation for gold.
When «The Big Short» speaks, it is advisable to listen more carefully. These days, a legendary American investor and hedge fund manager Michael Burry in one of his rare comments on the collapse of the FTX crypto exchange and the outlook for the gold market.
In his view, the crypto chaos caused by the FTX saga is a good foundation for gold. Burry usually very rarely reports on the yellow precious metal, which makes his announcement on the short message service Twitter all the more special. After a seven-month drought with losses, the price of gold rose again significantly in November.
Crypto scandals carry the risk of contagion
In a since-deleted tweet, the investor icon explained that the time gold prices will rise is when crypto scandals combine to form a “contagion.” “For a long time I thought the time had come for gold, when Crypto-Scandal join the contagion,” he tweeted.
Burry, who is on Twitter under the user account Cassandra BC has been known to delete tweets shortly after posting them. Meanwhile, the FTX debacle is rocking the crypto market. More crypto companies are getting into trouble now.
The hedge fund manager also disclosed that he currently holds a significant short position. “You have no idea how small I am,” Burry wrote in another tweet.
A bet against Wall Street
Burry, who runs hedge fund Scion Asset Management, is best known for betting against big Wall Street banks and spotting the subprime crisis of 2008. He made a fortune as a short seller when the U.S. housing bubble burst. The idiosyncratic star investor became famous among the general public with the film “The Big Short”, which is based on the author’s book of the same name Michael Lewis based.
In 2019, Burry raked in millions by buying Gamestop stock long before Reddit hype took over the titles. Last June, he prepared the world of investors for a potential stock and crypto market crash.
On the road with SBF
In this context, a spicy detail. In August, star author Lewis announced a new book: also about the crypto market finews.ch reported. It will be about an extraordinary personality,” Lewis said significantly at the time. “Learn all about cryptocurrencies and what screwed up the market structure in the United States.”
The best-selling author may have found the story of his life, even though he’s already written global hits about the financial world with “Flash Boys,” “The Big Short” and “Liar’s Poker.” According to an email from Creative Artists Agency circulating in Hollywood, Lewis spent the last six months with the previous head of FTX. Sam Bankman-Fried «SBF» to travel and chat with him.
Michael Lewis (Image: www.michaellewiswrites.com/Tabitha Soren)
“His childhood, his early success on Wall Street, his enthusiasm for effective altruism and the creation of a crypto-empire that catapulted him among the world’s richest people in record time seemed more than adequate for Michael Lewis’s book. he says in the letter. “The events of the past week have given the story a dramatic, surprising ending.”
Like Darth Vader and Luke Skywalker
It goes on to say, “Michael hasn’t written anything yet, but the story has become too big to wait for him.” In his book, Lewis also examines the rivalry between the SBF and Changpeng Zhao Treat yourself to «CZ», the head of Binance. Apparently he compares the two as Darth Vader and Luke Skywalker crypto world
It already looks like this book by Lewis is likely to become another bestseller. And all the drama surrounding FTX and SBF also provides plenty of material for a box office-filling Hollywood feature film.