Michael Burry: bitcoin could fall to $ 50,000

Michael Burry, known for his prediction of the 2008 financial crisis, warned that Bitcoin BTC $76,111.02 Mezo Wrapped BTC -3.92% Market capitalization $43.47 million VOL. 24 hours $3 billion could fall to $ 50,000. In his opinion, the consequences are already going beyond the crypto market, as institutional investors and corporate treasuries are forced to sell off gold and silver to cover losses.

In a publication on Substack, Burry noted that the weakening of precious metals prices in late January was not due to fundamental factors. According to his estimate, up to $ 1 billion in gold and silver positions were sold off in the last days of the month, often through futures instruments linked to tokenized assets. This, in his opinion, undermines the thesis that Bitcoin and gold prices are independent during crises.

Bitcoin temporarily dropped below $ 73,000, which corresponds to a drop of almost 40% from its recent high. Burry believes that there is no «organic reason» for the cryptocurrency to stop the fall. If the price reaches $ 50,000, he predicts bankruptcies of mining companies due to declining profitability and financing problems.

The analyst also criticized the assumption that corporate balance sheets with BTC could stabilize the market. He emphasized that such assets are not long-term and can be quickly sold under pressure, which will only intensify the wave of sales.

Burry questioned the positioning of Bitcoin as a «safe haven» or an alternative to gold. He believes that recent fluctuations have only exacerbated market stress, and that interest in ETFs is cyclical and driven by speculative demand. His main warning is that the fall of BTC could spread the wave of sell-offs to markets that were previously considered immune to the impact of digital assets.