Michael Burry, the investor known for predicting the 2008 financial crisis, warned that bitcoin The recent decline could have ripple effects across markets, particularly gold and silver.
In a Substack post on Monday, Burry said the cryptocurrency crash may have forced institutional investors and corporate treasurers to unload positions in other assets to cover losses.
“Up to $1 billion in precious metals appears to have been liquidated at the end of the month as a result of falling cryptocurrency prices,” Burry wrote, pointing to the decline in gold and silver in late January. He suggested that speculators and treasury managers rushed to reduce risk by selling profitable stakes in tokenized gold and silver futures.
Bitcoin briefly fell below $73,000 on Tuesday, marking a 40% drop from recent highs. Burry said the drop exposes the cryptocurrency’s weak foundation and threatens companies with large holdings, such as Strategy (MSTR).
“There is no organic use case for Bitcoin to slow or stop its decline,” he said. If the price falls to $50,000, Burry warned, mining companies could face bankruptcy and the tokenized metals futures market could “collapse into a black hole with no buyer.”
Burry argued that bitcoin has failed in its narrative as a digital safe haven and alternative to gold.
“There is 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 them as temporary forces rather than signs of real adoption. In his view, bitcoin remains speculative and is not anchored in any inherent value or widespread utility.
While Burry’s bearish stances often spark debate, they have also proven prescient before. For investors with exposure to cryptocurrencies, his warning raises questions about what happens if bitcoin’s decline triggers another wave of forced selling across markets.
