[ad_1]
Bloomberg TV
- “The Big Short” investor Michael Burry suggested that Tesla bought bitcoin to distract himself from regulatory issues in China.
- Burry also pointed to Dogecoin’s record price as evidence of a huge market bubble.
- The boss of Scion Asset Management revealed he was missing Tesla in December.
- Visit the Business Insider homepage for more stories.
Michael Burry questioned Tesla’s bitcoin investment and sounded the alarm on Dogecoin’s record price in a series of now-deleted tweets on Monday.
“Chinese regulators summon Tesla over quality issues as consumers complain about quality … but $ TSLA bought $ BTC,” the boss of Scion Asset Management tweeted, using tickers for Tesla and Bitcoin. “In my mind, so many #digitalconfetti.”
In other words, Burry thinks Tesla may have timed its $ 1.5 billion purchase of Bitcoin to distract from its problems in China.
Read more: GOLDMAN SACHS: Buy these 13 stocks that are expected to benefit from soaring commodity costs – 2 of which are expected to climb over 40%
Burry, whose billion-dollar bet on a collapse in the US housing market was chronicled in Michael Lewis’s book “The Big Short,” revealed he was running Tesla in December. He mocked Tesla CEO Elon Musk and the fact that his company’s stock price moved in tandem with Bitcoin in another tweet on Monday.
“The $ TSLA and $ BTC correlation coefficient is 0.951967 over the past six months,” Burry said. “@elonmusk for a perfect unity? No, Elon dreams of the impossible. He is determined to break the unity. Correlation> 1. And he has history on his side. Investors $ TSLA and $ BTC can do it all . “
Tesla was not immediately available for comment when contacted by Insider.
Burry, who unknowingly laid the groundwork for GameStop’s stock skyrocketing to 2,500% last month, has targeted Dogecoin in another tweet. The cryptocurrency, which was created as a joke, hit a record high this week after Musk tweeted about it. It now has a market capitalization of $ 10 billion.
Read more: Wealth management research chief shares 6 stock market sectors to buy as country reopens and economy experiences ‘best year of GDP growth since 2000’
“A doge’s breakfast maybe,” Burry said. He linked to a Wall Street Journal article in which the creator of Dogecoin said its current price of 8 cents was as absurd and insane as GameStop stock worth $ 325 at one point last month.
“We’re at an explosive high overall,” Burry continued, referring to a graphical pattern that shows a sharp increase in an asset’s price and trading volume, followed by a rapid drop in prices.
“The markets have now boiled in a dangerous way,” he said in an earlier tweet.
Burry hinted in another tweet that he expects a stock market crash in the coming months. He linked to “When The Levee Breaks,” a Led Zeppelin song, and said, “This time we’ll play it at the beginning, not at the end.”
[ad_2]
Source link