Michael Burry who is known for seeing the big market crash in two thousand eight has shared a strong warning about Bitcoin. He believes the recent fall in Bitcoin price may cause big problems not only in crypto but also in gold and silver markets.
Bitcoin dropped below seventy three thousand this week. This was a big fall from its recent high. Burry says this drop shows that Bitcoin is not as strong as many people believe. He thinks large investors and companies that hold Bitcoin may now be forced to sell other assets to cover their losses.
Burry believes that up to one billion dollars in gold and silver may have been sold by big investors. These investors may have sold their metal holdings to get cash to cover their losses in crypto. This selling happened at the end of last month when gold and silver prices also fell.
He said many traders and company treasurers rushed to reduce risk. They sold what was still making profit which was gold and silver. This helped them get money to deal with their falling crypto positions.
Burry also warned that if Bitcoin keeps falling the damage could grow. He said there is no real daily use that would stop Bitcoin from falling. If the price goes down to fifty thousand he believes some mining companies could go out of business. These companies need high prices to pay for power and machines.
He also said that companies holding large amounts of Bitcoin could face serious trouble. When price drops fast these companies lose value very quickly. This can hurt their balance sheets and make it hard to keep running.
Burry does not believe Bitcoin is a safe place to store value. Many people call it digital gold but he does not agree. He says Bitcoin has not proven that it can protect wealth during hard times. In his view it acts more like a risky bet than a safe place.
He also spoke about the recent price rise in Bitcoin. He believes this rise was pushed by new investment products and big money entering the market. But he says this does not mean Bitcoin has real long term value. He thinks this is still a trade based on hope and not on real use.
Burry also said that big company holdings of Bitcoin do not mean safety. Companies can sell at any time. They do not hold forever. If prices fall they will sell just like anyone else.
His message is a warning to investors. If Bitcoin keeps falling it could cause selling in other markets too. Gold and silver may face pressure again as people sell what they can to cover losses.
Burry has been right in the past so many people listen to his views. Even if some do not agree his words remind traders to be careful. Crypto markets move fast and can change in a short time.
For now Bitcoin is still under pressure. What happens next will depend on how investors react. If fear grows more selling could follow. If buyers return prices may find support. But the risk remains high and the market is watching closely.