I noticed an interesting observation from Michael Berry, an investor who predicted the financial crisis back in 2008. He has raised concerns again, this time about Bitcoin and its cascading effect on other assets.

The essence of his argument is simple: when cryptocurrencies fall, institutional investors and corporate treasurers start to panic and urgently sell profitable positions in other assets to cover losses. According to his calculations, by the end of January, about a billion dollars in gold and silver had been liquidated due to the decline in crypto prices. Corporate treasurers clearly hurried to get rid of positions in tokenized futures on precious metals.

Bitcoin recently dropped below the $73,000 mark (the current price is around $73.74K) — a decline of about 40% from recent highs. Berry sees this not just as a correction but as a sign of weak fundamental foundations. He explicitly states: there are no organic reasons to stop this decline.

If the price drops to $50,000, the consequences will be more serious. Mining companies could face bankruptcy, and the tokenized metal futures market risks collapsing entirely without buyers. Companies like Strategy (MSTR) with large Bitcoin holdings will be at risk.

The most interesting aspect of Berry’s position is his criticism of the idea that Bitcoin can serve as a digital safe haven or an alternative to gold. He claims that this simply hasn't worked. The recent rise was driven by spot ETFs and a wave of institutional interest, but this is temporary. Treasurers and speculators will not provide long-term support. In his view, Bitcoin remains pure speculation without intrinsic value.

An interesting point: Berry notes that there is nothing permanent in treasuries. This means corporate holders can change their positions at any moment.

Of course, Berry’s forecasts often spark debate, but his previous predictions have proven prophetic. If his analysis is correct, investors with crypto exposure should seriously consider scenarios of forced sell-offs in broader markets.