Michael Burry Warns of Bitcoin 'Sickening Scenarios' Amid Crypto Market Decline

Michael Burry, the investor known for betting against the U.S. housing market ahead of the 2008 crisis, warned that a deeper slide in Bitcoin (BTC) could set off what he called 'sickening scenarios,' including forced selling and failures at crypto-linked firms.

In a Feb. 2 post on his Substack, Burry laid out a set of downside thresholds — $70,000, $60,000, and $50,000 — that he argued could tighten financing conditions for big corporate holders and push weaker miners toward insolvency.

Burry's starting point is that price declines can become funding problems. He said a move below roughly $70,000 could deepen paper losses for large corporate holders and make capital harder, or more expensive, to raise as investor confidence erodes.