Investor Michael Burry issued a stern warning regarding the systemic consequences of the recent Bitcoin crash. Through his Substack, Burry stated that the pioneering cryptocurrency has failed as a hedge against currency debasement, revealing itself as a purely speculative asset. The analyst noted that the loss of critical support levels not only affects the crypto sector but threatens to trigger a massive liquidation of traditional assets.
The context is alarming: Bitcoin fell below $73,000, erasing gains accumulated since Trump’s re-election. Burry highlights that institutional adoption by companies like Strategy Inc. has created a dangerous shared risk; if the price continues to decline, risk managers will force massive sales to comply with financial reporting requirements. Furthermore, he claimed that crypto liquidations are already contaminating the precious metals market through tokenized futures.
The psychological support at $50,000 will be the central focus in the coming days. A drop to that level could lead to miner bankruptcies and dry up liquidity in Bitcoin ETFs, which are already seeing record outflows. Investors must remain alert to Bitcoin’s growing correlation with the S&P 500, as a further decline could force global-scale value destruction across financial markets.
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