The commodities market is in turmoil. Within just a few hours, silver recorded a massive correction<\/strong> of 17%, a movement of rare violence for this asset traditionally less volatile than digital assets. This sudden plunge immediately revived memories of previous market episodes where silver’s volatility had surpassed that of Bitcoin<\/a>, triggering record liquidation<\/strong> volumes.<\/p>\n\n\n\n This panic movement doesn’t appear isolated. Traders are nervously watching order books, fearing this volatility might be the prelude to a broader bear market affecting all risk asset classes. Historically, when silver drops this violently, it often signals an urgent need for liquidity from large holders, forced to sell their winning or liquid positions to cover losses elsewhere.<\/p>\n\n\n\n The current situation is all the more critical as trading<\/a> volumes on crypto derivatives products show signs of nervousness. While the correlation between precious metals and Bitcoin isn’t always obvious, the leverage mechanisms are interconnected.<\/strong> A drop of this magnitude in silver could trigger a domino effect, forcing algorithms and institutional traders to reduce their risk exposure, directly impacting BTC and major altcoins.<\/p>\n\n\n\n This nightmare scenario seems to vindicate Michael Burry. The famous investor from “The Big Short” had issued a clear warning earlier this week: the decline in crypto<\/a> collateral value could force the sale of precious metals in a negative feedback loop. Simply put, traders using their cryptos as collateral to trade commodities find themselves facing margin calls<\/strong>.<\/p>\n\n\n\nMichael Burry’s Warning: The Mechanics of Disaster<\/h2>\n\n\n\n