Michael Burry states that Bitcoin's drop could trigger a $1 billion gold and silver sell-off.

[BudKnows]

I just read an article about Michael Burry’s recent statement of the current BTC price drop could have a huge negative effect beyond crypto. Arguing that leveraged positions and forced liquidation may have already caused up to one billion gold and silver selling, as investors selling other assets to cover crypto losses with the current market situation questioning Bitcoin's role as a safe haven, and suggesting deeper declines could raise stress across digital assets and conventional markets.

I would like to read everyone's opinion on this .

 

[JohnnyDoe]

Gold's crash last week wiped out over $3 trillion from the value of all the gold now estimated to be above ground.
The whole crypto market is worth $2 trillion, it's still in its infancy.

Btw, $1bn has an impact of about $50 on btc price. On gold, about $0.15 per oz, or 0.003%. So I don't really understand what Michael Burry is talking about.

 

[Paratore]

Money flows into and out of assets and causes price action. It’s all linked. The price of Bitcoin, gold, equities, real estate, etc. in dollars or euros is a symptom of something, not the something itself. Bitcoin is more integrated into traditional financial systems than ever before. It is not surprising to see linkages start to develop.

If it goes down enough, I buy. Like always.

 

[Marty McFly]

Whatever can trigger a lower btc price is good!
I mean, usually if you want to buy something you like a low price is better than a high one.

 

[Paratore]

I have a theory that the metals run-up is linked to the unwinding of the yen carry trade and the recent volatility is due to metals trying to correct back down to proper safe haven price levels. Bitcoin has multiple factors at play. A lot of money has flowed in due to the rise of ETFs and other mainstreaming of the asset. That caused dome of the price run-up. It might be impacted by the carry trade like other safe haven assets. You are seeing some of that correcting out. I’m not knowledgeable enough about all the new traditional finance shenanigans in this space to score the likelihood and magnitude of any distortion. I’m one of those who thinks there are significant shenanigans in the private credit/leveraged loans space. That one might be quite bad.

 

[JohnnyDoe]

Reality is nobody knows what goes on in the markets, ever. You can build models and try to find explanations, but can’t predict anything.
Btc is not a speculative asset, so its price movements are irrelevant in the big picture.

 

[WhoMe]

I don't think the recent price moves of BTC and metals are related. Metals have their own factors and they don't really involve Bitcoin.

 

[Paratore]

Reality is nobody knows what goes on in the markets, ever. You can build models and try to find explanations, but can’t predict anything.
Btc is not a speculative asset, so its price movements are irrelevant in the big picture.

While true, it’s still fun to speculate.

 

[Marty McFly]

It’s all a fugazi. You can have fun with it, but if you don’t want to go crazy just HODL.

 

[JohnnyDoe]

While true, it’s still fun to speculate.

Liquidity events. Crazy leverage, easily accessible by everyone, including crypto kids with a lot of money and no idea of what to do with it (see Barron) and those thieves with billions in Btc from Russia (formerly Ukraine).