‘Big Short’ investor Michael Burry warns bitcoin plunge could trigger $1B gold, silver sell-off

Michael Burry, famous for predicting the 2008 financial crisis, warned that the recent drop in Bitcoin's price could cause significant ripple effects, specifically forcing institutional investors to liquidate up to $1 billion in precious metals like gold and silver at the end of January to cover crypto losses. Burry suggested that speculators and treasury managers sold profitable holdings in tokenized gold and silver futures as Bitcoin briefly fell below $73,000, marking a 40% decline from recent highs. He argued that Bitcoin lacks an organic use case, and if the price drops to $50,000, mining firms could face bankruptcy, potentially causing the tokenized metals futures market to collapse. Burry dismissed the idea that institutional holdings provide lasting support, viewing the recent bull run fueled by spot ETFs as temporary rather than true adoption.

(Source：CoinDesk)