The Big Short's Michael Burry has ominous warning for economy if Bitcoin crash hits $70,000
One of the investors from The Big Short has been warning of the consequences if the value of Bitcoin drops below $70,000, as prices have plummeted massively since they hit a peak late last year.
Lots of people have been kicking themselves that they didn't invest in Bitcoin back when it was ridiculously cheap as they'd have made an absolute fortune off it by now if they had.
However, if people have hopped on the bandwagon in recent months they're probably kicking themselves that they did pour their actual money into fake internet money that doesn't really do anything.
Bitcoin peaked in value in early October 2025 at around $124,000, but since then, the price has tumbled significantly and now sits at just over $70,000, with Forbes declaring 'finally the crash is here' for the cryptocurrency.
Advert
As a consequence of this Michael Burry of The Big Short fame has been warning that the crypto crash may have been causing more problems for the economy as investors might be selling off other assets to cover their positions.
Writing in his Substack, Burry pointed towards a recent and steep drop in the value of gold and silver, suggesting that investors were selling up in those more reliable areas due to collapsing cryptocurrency prices.
He wrote: "It looks like up to $1 billion in precious metals were liquidated at month’s very end as a result of falling crypto prices.
“There is no organic use case reason for Bitcoin to slow or stop its descent."
The famous investor wrote that Bitcoin had dropped around 40 percent in value since the October peak and had even worse words for the possibility that the price might plunge even further.
Burry warned that if dropping to around $70,000 was pushing down the prices of more traditionally solid investments such as gold and silver, it could get even worse if Bitcoin slid down to $50,000.
He warned if that happened then Bitcoin miners would start to go bankrupt and that could trigger 'a collateral death spiral' and then 'tokenized metals futures would collapse into a black hole with no buyer'.
It's grim stuff, and Burry suggested it was a sign that Bitcoin had been unsuccessful in positioning itself as a digital alternative to gold.
As for how low Bitcoin will go, that's anybody's guess as the value has plummeted from great height before and managed to recover.
However, there are some who are quite pessimistic about the future value of Bitcoin as Clem Chambers of Forbes predicted that the crypto would crash to around $60,000 and could then slide further into values of around $40,000.
That'd start triggering the Bitcoin mining bankruptcy spate that Burry has predicted if the value continues to fall, which the investor has suggested will have serious consequences for other parts of the market if people have to try and cover their losses by selling up somewhere.
Topics: Bitcoin, Cryptocurrency, Money
Joe Harker