'Big Short' Michael Burry projects gold to rise amid 'contagion' of crypto scandals

11.16.22 - UK Inflation hits 11.5%

Gold last traded at $1,773 an ounce. Silver at $21.51 an ounce.

 - Finbold--The discussion about the big unknown of cryptos continues. To add misery to the mystery, there is now talk of widespread scandal of this barely understood currency. If there is a silver (golden) lining to this cloud, some say it could be a good thing for gold prices. Here's why.

American investor and hedge fund manager, Michael Burry, commonly known as "The Big Short," has shared his view on the prospects of gold in the wake of the crypto market downturn. Burry, credited with predicting the 2008 financial crisis, believes gold might rise to the occasion, especially in the wake of crypto scandals.

In a now-deleted tweet on November 15, Burry stated that the moment for gold to rise would be when crypto-related scandals merge into what he termed a 'contagion.'

Burry's comments come as gold continues to rally despite the prevailing macroeconomic factors driven by rising inflation and possible continued interest rate hikes. In particular, gold hit a 60-day high, trading at $1,780.

Crypto market remains depressed amid piling scandals

It is worth noting that the crypto space has been impacted by myriad scandals that have significantly contributed to the depressed prices. For instance, in May, the market was hit with the Terra (LUNA) ecosystem crash, followed by widespread bankruptcy filings, impacting firms like the Celsius Network and Voyager Digital.