Michael Burry: Bitcoin Triggered a Chain Reaction
According to Burry, a further sharp decline in Bitcoin could undermine companies that hold the leading cryptocurrency on their balance sheets, increasing pressure from their creditors. The expert believes that gold and silver are no longer isolated from the crypto market: growing correlation is turning precious metals into participants in a chain reaction that was previously considered unlikely.
“Bitcoin has failed as a safe-haven asset and an alternative to gold. The idea that corporate holders can provide it with long-term support is not viable. Miners risk going bankrupt, and the precious metals futures market could collapse into a black hole without buyers,” Burry stated.
In the hedge fund founder’s view, Bitcoin’s main problem is that it remains a speculative asset, not backed by intrinsic value or broad utility. Old risk assessment models no longer work, and a sharp drop in just one major asset can trigger a reaction affecting both cryptocurrencies and the stock market, concluded the founder of Scion Capital.
Earlier, Bitwise Chief Investment Officer Matt Hougan said that the current downturn in the crypto market is not a short-term correction, but a true crypto winter.
See also: "Bitwise Analyst Named the Timeline for Bitcoin’s New All-Time High"
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