Bloomberg TV
- The ‘Big Short’ investor, Michael Burry, suggested that Tesla buy bitcoin to address regulatory issues in China.
- Burry also pointed to Dogecoin’s record price as evidence of a large market bubble.
- The boss of Scion Asset Management revealed that he was a short Tesla in December.
- Visit Business Insider’s homepage for more stories.
Michael Burry questioned Tesla’s bitcoin investment and on Monday sounded the alarm over Dogecoin’s record price in a series of tweets that have now been removed.
“Chinese regulators are calling Tesla about quality issues as consumers complain about quality … but $ TSLA has bought $ BTC,” the boss of Scion Asset Management tweeted, using the ticks for Tesla and Bitcoin. “In my mind’s eye, so much #digitalconfetti.”
In other words, Burry thinks that Tesla may have raised its $ 1.5 billion purchase of bitcoin to divert some of its problems in China.
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Burry, whose billion-dollar bet on a collapse of the U.S. housing market was written in Michael Lewis’ book “The Big Short,” reveals that he was a short-lived Tesla in December. He had fun with Elon Musk, CEO of Tesla, and the fact that the share price of his company moved into another tweet with bitcoin on Monday.
“$ TSLA and $ BTC correlation coefficient over the last six months is 0.951967,” Burry said. “@elonmusk is going for perfect unity? No, Elon dreams of the impossible. He is determined to break unity. Correlation> 1. And he has history on his side. $ TSLA and $ BTC investors can make anything happen.”
Tesla was not immediately available for comment when Insider contacted her.
Burry, who unknowingly laid the groundwork for GameStop shares to soar as much as 2,500% last month, tweeted in another tweet to Dogecoin. The crypto-currency, created as a joke, rose to a record high this week after Musk tweeted about it. It now offers a market capitalization of $ 10 billion.
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“Maybe a girls’ breakfast,” Burry said. He linked to a Wall Street Journal story in which the creator of Dogecoin said that the current price of 8 cents is just as absurd and absurd as GameStop stock worth $ 325 last month.
“We are a standout top in every way,” Burry continued, referring to a chart pattern showing a strong rise in the price and trading volume of an asset, followed by a rapid price drop.
“Markets have now bubbled over in a dangerous way,” he said in an earlier tweet.
Burry indicated in another tweet that he expects a market crash in the coming months. He linked to ‘When The Levee Breaks’, a song by Led Zeppelin, and said: ‘This time we play it at the beginning, not the end.’