Bitcoin’s sharp decline has reignited debate over whether the market has entered a new crypto winter, with veteran investor Michael Burry warning prices could fall as low as $50,000.
Burry said Bitcoin’s slump has already forced institutions to liquidate roughly $1 billion in gold and silver, arguing there is “no organic use case reason” for the asset to halt its descent.
“If BTC falls to $50,000, mining firms could face bankruptcy,”
Burry wrote, adding that tokenised metals markets could “collapse into a black hole with no buyer.”
The warning comes as Bitcoin briefly dipped below $73,000 this week, down about 40% from its October peak, while crypto-treasury firms such as Strategy and BitMine face billions of dollars in unrealised losses.
Strategy’s average Bitcoin purchase price sits near $76,000, pushing its market value and mNAV ratio toward levels that could force asset sales, while Ethereum holder BitMine is sitting on more than $6 billion in paper losses.
Some analysts see technical signals pointing to a prolonged downturn, with Bitcoin breaking key support levels and Ethereum accelerating lower after breaching major price thresholds.