{"id":71117,"date":"2026-02-05T20:16:30","date_gmt":"2026-02-05T20:16:30","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=71117"},"modified":"2026-02-05T20:16:30","modified_gmt":"2026-02-05T20:16:30","slug":"big-short-investor-michael-burry-issues-warning-as-bitcoin-crashes-toward-65000","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=71117","title":{"rendered":"\u2018Big Short\u2019 Investor Michael Burry Issues Warning As Bitcoin Crashes Toward $65,000"},"content":{"rendered":"
\n

Only days after issuing a fresh warning to the Bitcoin (BTC) community, Michael Burry \u2014 the Wall Street investor made famous by his bet against the US housing market ahead of the 2008 financial crisis \u2014 appears, at least so far, to be proven right.\u00a0<\/p>\n

As of Thursday, Bitcoin was trading near $65,850, extending losses that have dragged the cryptocurrency down nearly 50% from the all\u2011time highs of $126,000 reached in October of last year.\u00a0<\/p>\n

Bitcoin Could Enter \u2018Death Spiral\u2019\u00a0<\/h2>\n

In a Substack post<\/a>, Burry cautioned that the decline could evolve into what he described as a self\u2011reinforcing \u201cdeath spiral,\u201d with serious and lasting consequences for firms that have spent the past year aggressively accumulating Bitcoin on their balance sheets.<\/p>\n

Burry warned that additional price declines could quickly strain the finances of major corporate holders, forcing asset sales across the crypto ecosystem and triggering widespread destruction of value. He painted what he called \u201csickening scenarios,\u201d arguing that they are no longer hypothetical.\u00a0<\/p>\n

According to Burry, a further 10% drop in Bitcoin\u2019s price would leave Strategy (previously MicroStrategy) \u2014 the largest corporate holder of Bitcoin \u2014 \u201cbillions of dollars\u201d underwater and effectively shut out of capital markets.\u00a0<\/p>\n

\"Bitcoin\"<\/p>\n

\u201cThere is no organic use case reason for Bitcoin to slow or stop its descent,\u201d Burry wrote, emphasizing his belief that the current drivers of demand are insufficient to stabilize prices.\u00a0<\/p>\n

He argued that adoption by corporate treasuries and the growth of crypto\u2011linked spot exchange\u2011traded funds (ETFs) may have expanded participation, but they do not provide a permanent floor for valuations or shield the market from severe downside risks.<\/p>\n

$50,000 Price Could Push Miners Into Bankruptcy<\/h2>\n

Burry also warned that continued declines below key price levels could still spill over into other markets. He linked Bitcoin\u2019s recent weakness to sharp moves in gold and silver, suggesting that corporate treasurers have been forced to de\u2011risk by selling profitable positions in tokenized gold and silver futures.\u00a0<\/p>\n

These products, he noted, are not backed by physical metals and can overwhelm trading in the underlying commodities. Burry described this dynamic as a potential \u201ccollateral death spiral,\u201d arguing that liquidations in crypto markets can spill into tokenized metals and then distort physical markets.\u00a0<\/p>\n

The Wall Street veteran estimated that as much as $1 billion worth of precious metals was liquidated at the very end of the month as falling crypto prices forced investors to unwind positions.<\/p>\n

Looking ahead, Burry warned that a drop in Bitcoin to $50,000 could have severe consequences. In that scenario, he said, Bitcoin miners would likely be driven into bankruptcy, while tokenized metals futures could \u201ccollapse into a black hole with no buyer.\u201d\u00a0<\/p>\n

Featured image from OpenArt, chart from TradingView.com\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Only days after issuing a fresh warning to the Bitcoin (BTC) community, Michael Burry \u2014 the Wall Street investor made famous by his bet against the US housing market ahead of the 2008 financial crisis \u2014 appears, at least so far, to be proven right.\u00a0 As of Thursday, Bitcoin was trading near $65,850, extending losses […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-71117","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/71117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=71117"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/71117\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=71117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=71117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=71117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}