Silver’s 17% plunge amid bitcoin drop echoes Michael Burry’s “death spiral” call
Silver plunged 17%, reviving concerns about a collateral death spiral linked to falling crypto assets, as warned by Michael Burry.Summary
Silver experienced a significant 17% plunge over 24 hours, erasing recent gains and pulling gold and copper lower, attributed to thin liquidity and heavy speculative positioning. This renewed drop is manifesting on crypto platforms, evidenced by a $17.75 million forced liquidation tied to tokenized silver on Hyperliquid, primarily from long positions. This pattern aligns with hedge fund manager Michael Burry's recent warning about a "collateral death spiral," where declining crypto collateral forces traders to sell tokenized metals to meet margin calls, potentially causing metals products to inflict more damage than Bitcoin itself on liquidation leaderboards. While macro headlines regarding the Federal Reserve nomination and policy stance are present, the immediate driver for the precious metals market is positioning and forced selling rather than a clean macro bid.
(Source：CoinDesk)