Michael Burry Warns Bitcoin Death Spiral Could Push Prices Below $50K

Michael Burry warned that further declines in Bitcoin could trigger cascading liquidations across the crypto market.

“Michael Burry warned that bitcoin’s latest selloff could spill into other markets, including gold and silver”

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He described Bitcoin as a purely speculative instrument that has failed as a hedge like gold.

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Burry pointed to a critical level of $50,000 where miner bankruptcies could begin.

Since its October 2025 high, Bitcoin had fallen more than 40%.

The crypto market scale is still not large enough for a full systemic crisis.

Burry said Bitcoin has not reacted positively to typical market drivers.

He noted Bitcoin’s correlation with the S&P 500 reached around 0.50.

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This perspective contrasts with the market hype that had driven Bitcoin above $100,000.

Burry estimated up to $1 billion in precious metals were liquidated due to falling crypto prices.

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He warned the market for tokenized metals futures could collapse with no buyer.

The interconnectedness of crypto with traditional assets adds complexity to the crisis.