Michael Burry Warns Bitcoin Could Collapse After 50% Drop Toward $65k

Veteran investor Michael Burry warned that Bitcoin’s recent plunge to about $65,850 — roughly a 50% drop from October peaks near $126,000 — could turn into a self‑reinforcing “death spiral.” In a Substack post he said weaker demand drivers (corporate treasuries and spot ETFs) do not provide a permanent price floor. Burry argued further declines — a 10% fall would heavily damage Strategy (formerly MicroStrategy), the largest corporate BTC holder — could force forced asset sales across the crypto ecosystem. He also outlined systemic spillovers: tokenized gold and silver futures have been sold to de‑risk, potentially distorting physical markets. Burry warned a drop to $50,000 could bankrupt miners and collapse tokenized metals into illiquid “black holes.” Key stats: BTC ~ $65.8k (at time of report), ~50% off all‑time highs (~$126k), downside scenarios highlighted at -10% and -24% (~$50k). For traders: the note signals elevated liquidation risk, potential correlated selling in tokenized commodities, and increased counterparty and miner solvency risk — suggesting heightened volatility and downside pressure in the short term, with broader systemic risk if prices breach major support levels.