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Scion Asset Management founder Michael Burry, the hedge fund manager who famously predicted the 2008 housing crisis, shared the chart. For Bitcoin On the Platform
Key points:
– Puri equates Bitcoin’s recent drop from $126,000 to $70,000 with a bear market in 2021-2022, meaning it could drop to $50,000.
Not everyone is convinced – skeptics say that a single historical parallel cannot be considered a model.
– BTC has lost about 40% since its peak in October, and is currently close to $72,000, which was affected by the large withdrawal of exchange-traded funds (ETFs) and a lot of risk sentiment.
Earlier on Thursday, Puri drew parallels between BTC’s decline from October’s high of $126,000 to $70,000 and the decline that occurred in late 2021 to mid-2022, where BTC fell from $35,000 to below $20,000.
If you match the current prices and… The price of Bitcoin the strategy of the previous section shows the risks reaching the $50,000 lows.
Burri didn’t mention the price of the coin, but the apparent comparison was enough to spark the debate as to whether Bitcoin is repeating past events.
This story follows the story Puri posted it on Substack on Mondayin which he warned that Bitcoin’s decline could lead to self-reinforcing “death” for owners and mining companies.
“There is absolutely no reason for Bitcoin to slow down or stop its decline,” Puri wrote in a post.
Analysts question whether it is a one-cycle comparison
Not all market participants are positive. The GSR trading company expressed a common skepticism by asking: “Can this be considered a precedent if it only happened once?”
Criticism is not just about semantics. In 2021-2022, the fall of Bitcoin coincided with the rise of aggressiveness of the Federal Reserve, the collapse of platforms like Terra and FTX, and a market that was heavily driven by stock trading.
Today’s landscape looks very different – bitcoin ETFs have changed direction, players in the sector have a larger share of the market, and the prevailing risk has shifted from rising interest rates to increased volatility in stocks, commodities, and AI-related funds.
However, Puri’s warnings come at a critical time. Bitcoin dropped below $71,000 Before Wednesday’s recovery, the week-long extension of volatile trading dragged the cryptocurrency to levels not seen since November 2024.
Buri’s growing bear case poses a threat to Strategy and mining companies
Comparing the Burri chart adds perspective An increasing bearish trend was triggered earlier this week. In the Substack sessions on Monday, he warned that another 10% drop in BTC could leave Strategy, the largest bitcoin company and … 713,502 BTC on his bookswhich is costing billions of dollars and taking it out of the capital markets.
“Apocalyptic scenarios can now be found,” Puri wrote.
He also warned that the drop of $50,000 could push Mining companies Reaching bankruptcy is causing the metal contracts to fall into a “black hole without a buyer.”
Burri estimated that about $1 billion worth of steel was removed at the end of January due to the shortage. Cryptocurrency pricesHe explained that this is what causes people to die because of the things they promise.
This time, the goods refused Bitcoin ETFs to Under $100 Billion For the first time since April 2025, I became a full-time entrepreneur in… ETFs are now lost The average price is about $87,830 per coin.
Opposing views appear when others see the bottom
Not everyone agrees with Puri’s predictions. Bitwise’s Chief Investment Officer Matt Hogan explained his thoughts on the Wolf of All Streets podcast, describing today’s trend as “the best behavior in the end of winter.”
“Bear markets can be exhausting,” Hogan said. “There is no important story in a bear market.”
Michael Saylor, co-founder of Strategy, also pushed back on the challenges, stressing that the company is not facing any kind of calls and has no hope of being forced to sell bitcoin.
Burri’s writings confirmed his warnings, although his predictions were not always fulfilled. His approach tends to focus on trends and market psychology rather than price predictions – a distinction that may be useful to keep in mind. As the debate rages on About what follows Bitcoin.
A note ‘Big Bet’ Investor Michael Burry Points to Bitcoin Chart Pattern That Points to Possible Drop to Low $50,000 Levels appeared for the first time Cryptonews Arabic.
