Trump signs bills to reopen the U.S. government and Michael Burry warns of a collateral death spiral.

You're watching Coin Desk Daily. I'm Jen Sanasi.

Tuesday's sell-off sent Bitcoin and ether to multi-year lows, but the market saw glimps of hope after President Donald Trump signed the bills to reopen the U.S. government.

Lawmakers will negotiate further funding for the Department of Homeland Security over the next week and a half, but other major departments are funded.

Recovery was short-lived as major cryptocurrencies fell back into panic mode.

As of this morning, Bitcoin is down nearly 5% around $74,000, and ether has

tanked to below $2,200. Michael Burry, the investor famous for predicting the 2008 crisis, says

Bitcoin's drop is triggering a collateral death spiral in precious metals. In a new warning,

Burry noted that falling crypto prices forced traders to liquidate over a billion dollars in tokenized gold and silver and silver liquidations on hyperliquid actually exceeded Bitcoin liquidations, exposing how leverage is linking the two markets.

Burry argues this is proof that Bitcoin has failed as a digital safe haven.

He adds that if Bitcoin falls to $50,000, mining firms could face

bankruptcy and the market for tokenized metals could collapse into a black hole with no buyer.

And XRP holders now have a way to put their holdings to work. The Flair blockchain has launched

a new integration with the Morpho Protocol, introducing lending and borrowing for XRP-linked assets.

For years, XRP has lacked the defy options available on Ethereum, but this update allows

users to deposit their token to earn interest or use them as collateral to borrow stable coins.

This system uses isolated lending markets via the Mystic app to contain risk, marking a major step,

and bringing defy utility to the XRP ecosystem.

That's it for CoinDesk Daily. Get more updates on CoinDesk.com, and we'll see you next time.