‘Big Short’ investor Michael Burry says Tesla’s $1.5 billion bet on Bitcoin was a distraction – and Dogecoin’s record price signals a massive bubble | Currency News | Financial and Business News

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“The Big Short” investor Michael Burry.

  • “The Big Short” investor Michael Burry suggested that Tesla buy Bitcoin to divert attention from regulatory problems in China.
  • Burry also pointed to the record price of Dogecoin as evidence of a huge market bubble.
  • The head of Scion Asset Management announced that he was a short Tesla in December.
  • You can find more stories on the Business Insider homepage.

Michael Burry questioned Tesla’s Bitcoin investment and alerted Dogecoin record price in a series of now-deleted tweets on Monday.

“Chinese regulators are calling on Tesla to have quality issues as consumers complain about quality … but $ TSLA bought $ BTC,” the head of Scion Asset Management tweeted, using the tickers for Tesla and Bitcoin. “So much #digitalconfetti in my eyes.”

In other words, Burry believes Tesla timed the $ 1.5 billion purchase of Bitcoin to divert attention from the troubles in China.

Burry, whose multi-billion dollar bet on a US housing collapse was recorded in Michael Lewis’ book “The Big Short,” revealed he was a short Tesla in December. He made fun of Elon Musk, CEO of Tesla, and the fact that his company’s share price moved along with Bitcoin in another tweet on Monday.

“The correlation coefficient of $ TSLA and $ BTC is 0.951967 for the past six months,” said Burry. “@elonmusk strives for perfect unity? No, Elon dreams of the impossible. He is determined to break the unity. Correlation> 1. And he has history on his side. $ TSLA and $ BTC investors can make anything possible.”

Tesla wasn’t immediately available for comment when contacted by Insider.

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Burry, who unwittingly laid the foundation for GameStop shares soaring up to 2,500% in the past month, targeted Dogecoin in another tweet. The cryptocurrency, created as a joke, hit a record high this week after Musk tweeted about it. It now has a market cap of $ 10 billion.

“Maybe a doge breakfast,” said Burry. It linked up with a story from the Wall Street Journal where the creator of Dogecoin said the current price of 8 cents was as absurd and nonsensical as GameStop stock, which was once worth $ 325 last month.

“We’re in a blow-off spike on all counts,” continued Burry, referring to a chart pattern that shows a sharp rise in the price and volume of an asset, followed by a rapid fall in price.

“The markets have now passed dangerously,” he said in an earlier tweet.

Burry indicated in another tweet that he expects a market crash in the coming months. He linked with “When The Levee Breaks,” a song by Led Zeppelin, and said, “This time we’ll play it at the beginning, not the end.”

Continue reading: Tesla has just invested $ 1.5 billion in Bitcoin. Here are the bull and bear cases for crypto, according to legendary macro trader Mike Novogratz and Goldman’s CIO of wealth management.