Investor Michael Burry pointed out that due to high leverage and lack of liquidity, the price decline triggered a "collateral death spiral," leading to massive liquidations of tokenized silver futures, with liquidation volumes on some cryptocurrency platforms like Hyperliquid even surpassing Bitcoin. This volatility highlights how cryptocurrency exchanges are becoming alternative venues for macro trading, and pressure from traditional markets could lead to unexpected and larger-scale sell-offs.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Investor Michael Burry pointed out that due to high leverage and lack of liquidity, the price decline triggered a "collateral death spiral," leading to massive liquidations of tokenized silver futures, with liquidation volumes on some cryptocurrency platforms like Hyperliquid even surpassing Bitcoin. This volatility highlights how cryptocurrency exchanges are becoming alternative venues for macro trading, and pressure from traditional markets could lead to unexpected and larger-scale sell-offs.