"To Michael Burry, the man who famously shorted the US housing market before its collapse in 2008, it could be a sign of an impending disaster. In a Substack post this week, Burry warned that further losses for Bitcoin could put a major strain on the balance sheets of investors that overindexed on crypto, leading to further selloffs and a "death spiral" that could be difficult to recover from."
"It's a wakeup call to anyone who made major investments in crypto betting on a more lenient and light-on-regulation market during president Donald Trump's second term. The White House established its own " Strategic Bitcoin Reserve," a stockpile made up of Bitcoin holdings mainly from seized assets, and Trump has enriched himself enormously with a series of crypto-related business moves."
Bitcoin plunged almost 14 percent in 2026 and roughly 40 percent since October's all-time highs above $120,000, marking its longest losing streak since 2018 and falling nearly three percent in one day. The White House created a Strategic Bitcoin Reserve comprised largely of seized holdings while the president engaged in profitable crypto-related business moves. Michael Burry warned that additional Bitcoin losses could strain investors' balance sheets who overallocated to crypto, trigger cascading selloffs and a "death spiral", and push miners and large treasuries such as Strategy Inc. toward insolvency. Corrections in gold and silver and a weaker dollar have reshaped investor flows.
Read at Futurism
Unable to calculate read time
Collection
[
|
...
]