Michael Burry Warns: $1B Precious Metals Liquidation Risk Amid $BTC Dip!
"The Big Short" legend Michael Burry is sounding the alarm again, and this time, the ripples are hitting more than just the crypto market. Burry suggests that the recent volatility in BTC is forcing institutional players and corporate treasurers to dump their "haven" assets—specifically gold and silver—to cover losses.
The "Interconnected" Crash
According to Burry, the recent plunge in BTC below the $73,000 mark has exposed a "weak foundation" in the digital asset space. He pointed out that nearly $1 Billion in precious metals were liquidated at the end of January as a direct result of falling crypto prices.
Key Takeaways from Burry’s Warning:
Forced Liquidations: Institutional investors are likely selling tokenized gold and silver futures to de-risk their portfolios after BTC losses.
Mining Risks: If BTC continues its descent toward $50,000, Burry warns of potential bankruptcies among major mining firms.
The Saylor Factor: Firms with massive holdings, like MicroStrategy ($MSTR), could face "existential crises" if the support levels don't hold.
A Shift in Sentiment?
Burry remains skeptical of BTC as a "digital gold," arguing that its recent ETF-driven gains were purely speculative. With the Fear & Greed Index shifting toward panic, the legendary contrarian believes the "black hole" of liquidation is just beginning.
Is this another classic Burry "doom-post," or are we seeing the start of a massive cross-market deleveraging?
What’s your move? Buying the BTC dip or hedging with physical assets?
