American investor and hedge fund manager Michael Perry, better known as “The Big Short,” shared his views on the gold outlook in the wake of the cryptocurrency market downturn. Perry, who is credited with predicting the 2008 financial crisis, believes that gold may rise to the occasion, especially in the wake of the cryptocurrency scandals.
Its now deleted tweet On November 15, Barry stated that the moment for gold’s rally will be when cryptocurrency-related scandals coalesce into what he calls a “contagion.”
Perry’s comments come as gold continues to rise despite the prevailing macroeconomic factors driven by rising inflation and the prospect of continued interest rate hikes. In particular, gold hit a 60-day high, trading at $1,780.
The cryptocurrency market remains depressed amidst the accumulating scandals
It should be noted that the cryptocurrency space has been affected by countless scandals that have greatly contributed to the price drop. For example, the market was hit in May by the collapse of the Terra (LUNA) ecosystem, followed by massive bankruptcies, affecting companies like Celsius Network and Voyager Digital.
However, the biggest scandal involved cryptocurrency exchange FTX, which was affected by a liquidity crisis as CEO Sam Bankman-Fried faced allegations of misappropriation of client funds.
With the dire market conditions, Buri previously warned that investors should prepare for a possible crash in stocks and cryptocurrencies, Coinphony reported on July 1. According to the founder of Scion Asset Management, the recent massive correction has seen the S&P 500, the Nasdaq, and the Nasdaq. Bitcoin (BTC) prices present a lot of pressure.
Meanwhile, as the FTX crisis unraveled, the market was hit hard, led by assets like Bitcoin, which corrected below $20,000.
At press time, the asset was trading at $16,700 as bears and bulls continued their battle for control of the price range.
With gold performing positively, proponents of the precious metal have argued that Bitcoin still has a long way to go before it can be considered a hedge against inflation.
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Michael Perry’s ‘Big Short’ post mentioning gold rally amid cryptocurrency scandal ‘contagion’ appeared first on Coinphony.