In a Substack post published on Monday, Burry argued that the downturn in crypto markets has caused a chain reaction. Institutional investors and corporate treasuries, he claimed, are forced to reduce positions in more liquid and easily convertible assets to offset losses in Bitcoin and other crypto holdings.<\/p>\n
\n“It appears that up to $1 billion worth of precious metals was liquidated at the end of the month due to falling crypto prices.”<\/em><\/p>\n<\/blockquote>\nThis assessment is based on the sudden pullbacks in gold and silver prices at the end of January. According to Burry, speculators and corporate treasurers sought to reduce risk by selling profitable positions in tokenized gold and silver futures. This suggests that sharp movements in the crypto market can indirectly pressure precious metals through forced selling.<\/p>\n
On Tuesday, Bitcoin briefly fell below $73,000, experiencing roughly a 40% drop from its recent highs. Burry argues that this pullback exposes Bitcoin\u2019s weak fundamental dynamics. He notes that the decline poses a serious risk, particularly for companies holding significant Bitcoin on their balance sheets. Burry pointed to firms like Strategy (formerly MicroStrategy) as potentially coming under pressure due to their large Bitcoin positions. He also warned that if Bitcoin were to fall to around $50,000, some mining companies could face bankruptcy risks.<\/p>\n