Gold prices reached record highs of over $5,545 per ounce in late January, but have since corrected to $5,179 per ounce as of Tuesday trading. Big Short's Michael Burry thinks the major price correction of precious metals is due to the Bitcoin crash, as corporations had to de-risk by selling profitable positions in tokenised gold and silver futures.
Tokenised metal futures are not backed by physical metal and can overwhelm trading in the physical market. Burry had said in a recent post on X that this could cause 'a collateral death spiral,' adding that up to $1 billion in precious metals was liquidated by January end due to falling crypto prices.
