Michael Burry warned that bitcoin’s sharp decline could spill over into traditional markets, especially gold and silver. He believes losses in crypto may have forced institutional investors and corporate treasuries to sell other assets to cover positions, potentially driving up to $1 billion in precious metals liquidations at the end of the month.

Burry argued bitcoin lacks a strong fundamental use case to stop its fall and said a drop toward $50,000 could push mining firms toward bankruptcy while severely damaging markets tied to tokenized metals futures. He also dismissed the idea of bitcoin as a reliable digital safe haven, claiming corporate treasury holdings won’t provide lasting price support.

According to Burry, the recent rally fueled by spot ETFs and institutional interest reflects temporary momentum rather than genuine adoption. He maintains that bitcoin remains largely speculative and vulnerable to further forced selling across financial markets if prices continue to slide.