Michael Burry warns Bitcoin slide could trigger forced selling across markets

[chainsniff]

Michael Burry, the investor famed for predicting the 2008 financial crisis, warned that Bitcoin’s sharp decline could spark forced selling across multiple asset classes. In a Substack post published Monday, Burry said institutional investors may already be liquidating other holdings to cover crypto losses.

Bitcoin is down roughly 40% from its October peak, briefly touching $73,000, while major altcoins have fallen 20–40% since January’s FOMC meeting. Burry estimated that up to $1 billion in precious metals were sold in late January as crypto losses mounted.

He argued Bitcoin has failed as a digital safe haven and warned that a drop toward $50,000 could push mining firms into bankruptcy and destabilize tokenized commodities markets.

[madtrader]

$1b in precious metals sold just to cover crypto losses… that’s insane. shows how leveraged some of these positions really are.