Investor Michael Burry has warned that bitcoin’s recent price decline may be triggering forced selling across other asset classes, including gold and silver. According to Burry, losses tied to cryptocurrencies may have pushed institutional investors and corporate treasuries to liquidate up to $1 billion worth of precious metals to manage risk and cover losses.
Bitcoin briefly fell below $73,000, marking a sharp drop of roughly 40% from recent highs. Burry said the move exposed structural weaknesses in the crypto market and may have prompted large holders to sell profitable positions elsewhere, particularly in tokenized gold and silver instruments, during late January.
Concerns Over Corporate and Mining Exposure
Burry argued that bitcoin’s downturn poses risks to firms with significant crypto holdings, including corporate treasuries and mining companies. He warned that if prices were to fall further toward $50,000, some mining operations could face severe financial stress or bankruptcy due to rising costs and declining margins.
He also cautioned that markets tied to tokenized precious metals could see liquidity dry up if forced selling accelerates, creating conditions where buyers step away during periods of market stress.
Bitcoin’s Role as a Safe Haven Questioned
Burry rejected the idea of bitcoin as a digital safe haven or a reliable alternative to gold. He characterized recent gains driven by exchange-traded fund inflows as speculative rather than evidence of durable adoption.
While his views remain controversial, Burry’s comments highlight growing concerns about cross-market contagion as volatility returns to digital assets and institutions reassess their exposure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.