Michael Burry warned that bitcoin’s latest selloff could spill into other markets, including gold and silver.
In a Substack post on Monday, the investor said bitcoin’s decline may have pushed institutional investors and corporate treasurers to liquidate other positions to cover losses.
Claim of forced selling in metals
Burry wrote:
“It looks like up to $1 billion in precious metals were liquidated at month’s very end as a result of falling crypto prices.”
He tied the comment to an end-of-January dip in gold and silver, and said speculators and treasury managers may have de-risked by selling profitable holdings in tokenized gold and silver futures.
Bitcoin below $73,000
Bitcoin briefly fell under $73,000 on Tuesday, which Burry described as a roughly 40% drop from recent highs.
He argued the move exposed weak foundations and could pressure firms with large bitcoin positions, including Strategy.
Mining and ETF-driven demand
Burry said a further decline to $50,000 could push some mining firms toward bankruptcy, and warned the market for tokenized metals futures could “collapse into a black hole with no buyer.”
He also rejected bitcoin’s framing as a digital safe haven or alternative to gold, calling the recent run-up tied to U.S. spot Bitcoin ETFs and institutional demand a temporary, speculative force.
Burry added that corporate and institutional bitcoin allocations may not provide lasting support, arguing that “there’s nothing permanent about treasury assets.”
