“Price Movements Are Almost Identical”

In recent days, Michael Burry has increased his commentary on Bitcoin, arguing that the decline from the October peak near $126,000 to $70,000 closely resembles the sharp drop seen between late 2021 and 2022. Sharing a chart, Burry claimed that price movements in both periods nearly overlap, stressing that such historical similarities can serve as leading signals for the market and should not be ignored.

In the previous cycle Burry referenced, Bitcoin fell from around $35,000 to below $20,000. If a similar percentage decline were applied to today’s prices, market participants have begun to discuss the possibility of Bitcoin sliding toward the $50,000 range. Analysts say this scenario remains on the table, especially as long as overall market sentiment stays weak.

Burry’s post quickly surpassed 1 million views and sparked intense debate within the crypto community. Some investors argued that it is risky to draw strong technical conclusions from a single historical comparison and emphasized the need for caution.

Among those sharing this skeptical view was trading firm GSR, which responded to Burry’s post with the remark:

“Just because it happened once, does that make it a pattern?”

Burry’s Controversial Past Predictions

Michael Burry is known not only for accurate forecasts but also for controversial calls. For instance, in 2021, when Bitcoin was trading around $33,000, he predicted further declines—yet shortly afterward, Bitcoin rallied strongly to nearly $69,000. These past examples reinforce the view that Burry’s analyses do not always play out as expected and that investors should not treat his latest warnings as a certainty on their own.

In another post shared yesterday, Burry suggested that if Bitcoin’s decline continues, it could lead to “very painful outcomes.” He mentioned three possible scenarios but did not provide details. This vague statement further weakened already fragile market sentiment and added psychological pressure on investors. Analysts note that such warnings can intensify fear during periods of high volatility.

Assessment

Michael Burry’s comparison of Bitcoin’s current price action to the 2022 bear market has brought bearish scenarios back into focus, particularly amid today’s heightened volatility. While analysts acknowledge that historical parallels can offer valuable signals, most agree they should not be treated as definitive on their own. In the near term, the $50,000–$70,000 range is emerging as a critical price zone to watch closely for Bitcoin’s direction.

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Burry: Crypto Losses Hit Precious Metals

In a Substack post published on Monday, Burry argued that the downturn in crypto markets has caused a chain reaction. Institutional investors and corporate treasuries, he claimed, are forced to reduce positions in more liquid and easily convertible assets to offset losses in Bitcoin and other crypto holdings.

Burry summarized the situation as follows:

“It appears that up to $1 billion worth of precious metals was liquidated at the end of the month due to falling crypto prices.”

This assessment is based on the sudden pullbacks in gold and silver prices at the end of January. According to Burry, speculators and corporate treasurers sought to reduce risk by selling profitable positions in tokenized gold and silver futures. This suggests that sharp movements in the crypto market can indirectly pressure precious metals through forced selling.

On Tuesday, Bitcoin briefly fell below $73,000, experiencing roughly a 40% drop from its recent highs. Burry argues that this pullback exposes Bitcoin’s weak fundamental dynamics. He notes that the decline poses a serious risk, particularly for companies holding significant Bitcoin on their balance sheets. Burry pointed to firms like Strategy (formerly MicroStrategy) as potentially coming under pressure due to their large Bitcoin positions. He also warned that if Bitcoin were to fall to around $50,000, some mining companies could face bankruptcy risks.

“Bitcoin Hasn’t Been a Digital Safe Haven”

Michael Burry also strongly criticized Bitcoin’s commonly cited “digital gold” narrative. He argued that Bitcoin has proven to be neither a digital safe haven nor a true alternative to gold.

“There is no organic reason that will stop or slow Bitcoin’s decline.”

Burry believes recent price surges in Bitcoin were largely driven by the launch of spot ETFs and temporary institutional interest, which does not represent lasting adoption in the real world. He considers this demand speculative and insufficient to establish a durable price floor.

“Collateral Death Spiral” in Tokenized Silver

One of Burry’s most striking warnings concerned the tokenized silver market. He described the situation as a “collateral death spiral”:

1. Crypto prices fall
2. Leveraged positions are liquidated
3. Collateral in tokenized metals must be sold
4. Sales push prices even lower

Burry noted that this cycle is particularly pronounced on platforms with high leverage. He highlighted that liquidations in tokenized silver on some crypto platforms even temporarily exceeded Bitcoin liquidations. This was observed especially on platforms like Hyperliquid, which handle highly leveraged trades.

Burry stated:

“It was reported that tokenized silver futures ironically exceeded Bitcoin liquidations on a crypto market called Hyperliquid.”

This scenario shows that crypto exchanges are no longer just venues for digital asset trading—they have effectively become 24/7 macro trading platforms. Stress and collateral pressure from traditional markets can now transmit into crypto markets much faster through tokenized commodities.

Crypto Is No Longer Just Crypto

According to Michael Burry, recent events clearly demonstrate that crypto markets are no longer isolated or self-contained. The impact of Bitcoin’s sharp decline extends beyond digital assets, triggering forced sales in traditional assets like gold and silver. His warning highlights a significant risk for institutional investors exposed indirectly to crypto. A critical question now looms for the markets: Could the decline in Bitcoin mark the beginning of a broader global liquidation wave?

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Burry: “Profits Are Being Artificially Boosted Through Depreciation Tricks”

Burry, who famously earned $800 million by shorting the housing market before the 2008 crash, posted on X (formerly Twitter) that tech giants are manipulating their balance sheets. According to him, companies such as Amazon, Google, Microsoft, and Oracle are overstating the lifespan of their servers and hardware to minimize depreciation expenses, making their profit margins appear stronger than they really are.

“Extending the useful life of assets to lower depreciation artificially inflates profits,” Burry wrote. “It’s one of the most common frauds of the modern age.” He added that this issue is especially prevalent in cloud infrastructure powered by Nvidia chips, where hardware with a 2–3 year product cycle is being listed on financial statements as having a lifespan of 5–7 years.

“$176 Billion in Expenses Being Hidden,” Claims Burry

According to Burry, major tech firms are underreporting around $176 billion in depreciation expenses for the 2026–2028 period, misleading investors with inflated profit figures.

He outlined potential impacts on corporate earnings:

• Oracle’s profit margins may be overstated by 26.9%.
• Meta (Facebook) could be reporting profits 8% higher than reality.

Burry warned that this accounting manipulation could have significant long-term effects on tech stock valuations, calling it “a hidden weakness” behind the current tech boom.

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“More Details Coming on November 25”

Burry ended his post by stating, “More details will come on November 25.” Analysts speculate that he may release a detailed research report or reveal a new investment strategy on that date. His hedge fund, Scion Capital Management, continues to hold short positions against major AI stocks despite their recent rally.
Of his $1.4 billion portfolio:

• 66% is short on Palantir (PLTR)
• 14% is short on Nvidia (NVDA)

This positioning signals Burry’s conviction that the AI-driven tech rally is overextended and that valuations of big tech firms are significantly inflated. Financial analysts view his statements as an early warning against a potential post-2021 tech bubble, similar to his prescient call before the 2008 crisis. Once again, Burry appears to be positioning himself against the crowd, hinting at an approaching market correction led by overvalued technology giants.

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The post Famous Investor Michael Burry Warns: “November 25 Could Change Everything” appeared first on Coin Engineer.