What to know : Michael Burry warned that bitcoin's sharp decline may be forcing institutional investors and corporate treasurers to sell up to $1 billion in gold and silver to cover crypto losses. He argued that bitcoin's fall below $73,000 exposed its weak foundations, threatening firms with large holdings and potentially pushing some mining companies toward bankruptcy if prices drop to $50,000. Burry contended that bitcoin has failed as a digital safe haven or alternative to gold, viewing recent ETF-driven gains as speculative rather than evidence of lasting, real-world adoption.
Michael Burry, the investor known for predicting the 2008 financial crisis, warned that bitcoin’s recent drop could have ripple effects across markets, particularly in gold and silver.
In a Substack post Monday, Burry said crypto’s decline may have forced institutional investors and corporate treasurers to unload positions in other assets to cover losses.
“It looks like up to $1 billion in precious metals were liquidated at month’s very end as a result of falling crypto prices,” Burry wrote, pointing to the end-of-January dip in gold and silver. He suggested speculators and treasury managers rushed to de-risk by selling profitable holdings in tokenized gold and silver futures.
Bitcoin briefly fell below $73,000 on Tuesday, marking a 40% decline from recent highs. Burry said the plunge exposes the cryptocurrency’s weak foundation and threatens firms with large holdings, such as Strategy (MSTR).
“There is no organic use case reason for Bitcoin to slow or stop its descent,” he said. If the price falls to $50,000, Burry warned, mining firms could face bankruptcy, and the market for tokenized metals futures could “collapse into a black hole with no buyer.”
Burry argued bitcoin has failed in its pitch as a digital safe haven and alternative to gold.
“There’s nothing permanent about treasury assets,” he added, dismissing the idea that corporate or institutional holdings in bitcoin would provide lasting support.
Bitcoin’s recent bull run was fueled by the launch of spot ETFs and a wave of institutional interest. But Burry sees these as temporary forces rather than signs of real adoption. In his view, bitcoin remains speculative and unanchored by any inherent value or widespread utility.
While Burry’s bearish takes often spark debate, they’ve also proven prescient before. For investors with crypto exposure, his warning raises questions about what happens if bitcoin’s fall triggers another wave of forced selling across markets.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
