SINGAPORE, February 5, 2026, 16:30 SGT
- Bitcoin edged down toward the $70,000 level during Asian trading, deepening its retreat from recent peaks.
- Investor Michael Burry cautioned that the crypto crash might trigger forced selling by institutions and corporate treasurers, dragging down gold and silver prices as well.
- Analysts pointed to worries over tighter liquidity and ongoing outflows from U.S. spot bitcoin ETFs as key pressure factors.
Bitcoin dipped closer to $70,000 Thursday after hedge fund manager Michael Burry cautioned that larger losses might trigger asset sales extending beyond crypto, hitting gold and silver too.
The selloff matters now because bitcoin is deeply woven into mainstream portfolios via exchange-traded funds and corporate treasury holdings. When that flow reverses, it can trigger selling in areas unrelated to crypto’s fundamentals.
In a recent Substack post, Burry suggested that bitcoin losses might have driven institutions and corporate treasurers to raise cash by offloading other assets. “It looks like up to $1 billion in precious metals were liquidated at month’s very end,” he noted, adding, “There’s nothing permanent about treasury assets.” Coindesk
Burry painted what he called “sickening scenarios,” warning that if bitcoin takes another hit, Michael Saylor’s MicroStrategy could face serious strain, with “capital markets essentially closed.” He cautioned that a drop toward $50,000 might force some miners into bankruptcy and dry up buyers in tokenised metals markets. Ibtimes
Bloomberg reported that Burry called the risk a self-feeding “death spiral,” saying bitcoin has proven itself a “purely speculative asset” rather than a safeguard against currency debasement — the notion that money loses value over time. Bloomberg
Bitcoin fell more than 3% to $70,052.38 during the Asian session, hitting its lowest point since November 2024, Reuters reported. Ether also dropped, reaching $2,086.11. Manuel Villegas Franceschi of Julius Baer noted that markets “fear a hawk” in Fed-chair nominee Kevin Warsh. Meanwhile, Deutsche Bank analysts pointed out that steady ETF selling indicates “traditional investors are losing interest.” Reuters
Spot bitcoin ETFs hold actual bitcoin and trade like stocks on exchanges; when outflows hit, these funds might sell their coins to cover redemptions. The Fed’s balance sheet represents its assets, and when it shrinks, liquidity often tightens, putting pressure on risk assets.
Burry’s warning on metals centers on tokenised gold and silver futures — digital contracts linked to metal prices instead of physical bars — and the risks of leverage when margin calls hit. He also pointed to bitcoin’s growing correlation with the S&P 500, tracking how closely these assets move in tandem.
Corporate bitcoin holders find themselves caught in the middle. When cash runs low, treasurers often have to offload whatever they can, not necessarily what they’d prefer. Large unrealized losses risk becoming actual sales if lenders or investors push for it.
However, the chain reaction Burry described isn’t guaranteed. Crypto has frequently bounced back sharply. Meanwhile, gold and silver moves often track interest-rate speculation, dollar fluctuations, and changes in trading regulations just as much as any unwind sparked by crypto.
Right now, the market is focused on whether bitcoin can maintain the $70,000 level and if ETF outflows ease up. The real test will come if another round of forced selling hits—those moves that ripple through markets and seem irrational as they happen.
