Michael Burry and the Bitcoin Crash: Warnings on Gold and Silver

ChainSpy · 2026-02-12T02:16:45+00:00

Michael Burry warns that Bitcoin's decline may prompt significant liquidations of gold and silver, potentially reaching $1 billion. He argues that Bitcoin fails as a safe-haven asset and criticizes recent speculative rallies driven by institutional investments.

ChainSpy

2026-02-12 02:16:45

Abstract generation in progress

Financial analyst Michael Burry continues to issue warning signals about the cryptocurrency markets. According to reports shared on X, Burry believes that the decline of Bitcoin could trigger a massive liquidation of gold and silver, with potential effects quantifiable up to 1 billion dollars.

The reasons behind Michael Burry’s warning

Michael Burry argues that institutional investors and corporate CFOs may be forced to liquidate significant positions in precious metals to offset losses accumulated in the cryptocurrency sector. With Bitcoin currently trading at $67,630 (as of February 12, 2026), the price is well below previously considered critical levels. Burry has already highlighted Bitcoin’s structural fragility, emphasizing that any breach of key psychological support levels exposes the asset’s inherent weakness.

Systemic risks according to Michael Burry

The investor points out that companies holding substantial Bitcoin positions would face significant threats if the price drops toward $50,000. In this scenario, many mining companies could find themselves insolvent. Burry also reiterates that Bitcoin has not assumed the role of a safe-haven asset that many promoters promised, failing both as a risk protection tool and as a credible alternative to traditional gold.

Michael Burry’s criticism of speculative rallies

A central element in Burry’s thesis concerns the interpretation of recent Bitcoin price increases, mainly attributed to the introduction of spot ETFs. According to Burry, this movement does not represent genuine and sustainable adoption of Bitcoin in the real economy but rather a manifestation of pure financial speculation. The analyst emphasizes the fundamental difference between institutional capital flows through derivatives and the authentic integration of cryptocurrency into the economic system. Michael Burry continues to hold this skeptical position, highlighting how Bitcoin’s volatility and structural fragilities undermine its function as a reliable store of value.

BTC-2,78%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.