Michael Burry has trumpeted gold as a likely winner from the crypto meltdown, and hinted he’s betting on stocks to tumble.
“Long thought that the time for gold would be when crypto scandals merge into contagion,” Burry said in a now-deleted tweet on Tuesday.
The investor of “The Big Short” fame was almost certainly referring to the financial pressures spreading across the crypto industry that have hit Sam Bankman-Fried’s collapsed crypto exchange FTX. They’ve also weighed on the likes of Celsius, Voyager, the Winklevoss twins’ Genesis, and BlockFi in recent weeks.
Crypto proponents have pitched bitcoin and other tokens as “digital gold”. Their argument is crypto is superior to the yellow metal as a haven asset and store of value during periods of inflation, currency depreciation, and economic turmoil.