World's largest bank changes Bitcoin forecast as The Big Short's Michael Burry warns over crash
The forecast of Bitcoin has undergone a drastic change since the beginning of 2026.
It's only been a month, but crypto bros won't be best pleased with how this year has gone so far, as the value of Bitcoin has started to plummet.
A certain investor though, best known for being played by Christian Bale in 2014's The Big Short, warned that this may happen and that investors will pay the price.
Speaking in his Substack recently, Michael Burry said that a recent drop in the value of silver and gold could indicate that the crypto crash would continue to get worse.
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He suggested that this meant that investors were selling in these more reliable areas as cryptocurrency value continued to plummet to cover their losses.
Many may have missed the boat when it came to investing in Bitcoin when it was ridiculously cheap, but it doesn't mean that people haven't been making money off recent investments.
While a select few have made a fortune off Bitcoin over the last decade or so, some are starting to lose value in their investments.
While Bitcoin peaked at around $126,000 in October 2025, it is now trading at around $65,000 (£47,700).
This marks a $20,000 drop since mid-January, with the cryptocurrency slowly bleeding and falling to its new worth.
There's no obvious cause or telling factor, with investors instead losing confidence and selling more Bitcoin.
What has JP Morgan said?
A report published by JPMorgan this week - an American multinational banking institution, who are also the world's largest bank by market capitalisation - has gone against the grain
It suggests that Bitcoin could reach $266,000 in the long-term as it could become more attractive than gold, despite pressure in recent weeks.
JPMorgan analysts believe that Bitcoin’s market capitalisation would need to rise high enough for the crypto to carry a value of $266,000 per BTC, in order to match gold investment levels in the private-sector.
At the moment, Bitcoin is no longer more volatile than gold - though the bank highlights that these aims are 'unrealistic' for 2026, instead growing over time once the negativity fades.
Michael Burry's Bitcoin warning
Burry had claimed in his Substack that a crash was coming, saying: "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."
He noted that Bitcoin dropped by 40 percent since its October peak, sensing that the price would plunge even more. He warned that dropping below $70,000 would push prices of silver and gold down, as more investors sell to cover their crypto losses.
Burry terrifyingly said that if prices fell below $50,000, this could make Bitcoin miners to go bankrupt, starting 'a collateral death spiral'.
The truth is that nobody can predict where the value of Bitcoin will go, due to its volatility, so as many investors say, be prepared to 'ride the wave' if you throw some money into it.
Topics: Bitcoin, Cryptocurrency, Money
Joshua Nair