“Big Short” Michael Burry flags “death spiral” after silver liquidations beat bitcoin
The tokenized version of silver has whipped around more wildly than bitcoin, resulting in large losses to holders. Hedge fund manager Michael Burry, known for “The Big Short,” sees this as a vicious loop where falling prices force liquidations, tanking it further.
Burry pointed to the same dynamic in a note this week, characterizing it as a “collateral death spiral” in which falling crypto prices and heavy leverage triggered liquidations in tokenized metals and digital assets.
Burry said silver liquidations exceeded bitcoin on at least one crypto venue during the unwind.
“Sky-high leverage on these crypto exchanges due to rising metals prices meant that as the crypto collateral fell, the tokenized metals had to be sold,” he said….
