Michael Burry Warns: Bitcoin Crash & Slide Could Wipe Out Companies

Michael Burry—the investor who called the 2008 housing collapse—just dropped another bombshell. This time, his target isn't subprime mortgages. It's Bitcoin.

The Warning Shot

Burry warns that a sharp downturn in Bitcoin could trigger a domino effect. Companies overexposed to crypto assets might not survive the slide. He’s not talking about a minor correction. He’s talking about a wipeout.

The Domino Effect

Think about the ecosystem. Publicly traded firms holding Bitcoin on their balance sheets. Miners leveraged to the hilt on energy costs. Payment processors and lenders built on crypto rails. A sustained crash doesn't just hurt speculators—it threatens entire business models. It’s a classic liquidity trap, just with digital gold.

The Contrarian's Calculus

Burry’s track record demands attention, even when his views clash with crypto evangelism. His warning hinges on a simple, brutal premise: when the tide of easy money recedes, you see who’s been swimming naked. And in crypto, a lot of companies might be looking for a towel.

It’s the ultimate stress test for an asset class that’s never seen a true, macro-driven bear market while being this institutionalized. The finance world loves a good narrative—first it was ‘hedge against inflation,’ then it was ‘digital gold.’ The next chapter might just be ‘corporate casualty report.’

Bitcoin Crash Narrative Spelling Bankruptcy for Companies

Investor Michael Burry, in his latest Substack post, has emphasized the current Bitcoin dip scenario. Burry shared how companies like Strategy may ultimately spiral out of control, among other reasons, if Bitcoin falls below the $70K mark. Among other things, Burry emphasized how recent crops in gold and silver may also signal a brewing BTC drop on the cards for the markets to witness.

Moreover, Burry shared how crypto miners may also go bankrupt in this case, with the metal market breaking into shambles as well.

BREAKING: Michael Burry warns Bitcoin’s decline will wipe out significant value for companies holding large amounts on their balance sheet.

He says BTC has failed as a SAFE haven like gold and behaves more like a volatile stock tied to the S&P 500. Aggressive holders face… pic.twitter.com/Ff9G3b7cgo

Bitcoin Crash Narratives Gain Momentum

In addition to this, Galaxy Research Digital Head Alex Thorn has also outlined a similar Bitcoin crash scenario. Thorn emphasized how Bitcoin’s recent weakness in its value stance may end up pushing Bitcoin to explore the $58K mark.

https://t.co/78ZeeODAOF