"Big Short" Burrie Warns Bitcoin Price Crash Could Trigger a Chain Reaction

K-LinePoet · 2026-02-11T15:12:33+00:00

Fund manager Michael Burry warns that a sharp decline in Bitcoin prices could intensify a "death spiral," causing long-term damage to coin-holding companies. Since October, Bitcoin has fallen about 40%, and if it drops another 10%, major holders could face huge losses, potentially triggering a sell-off and a collapse in value across the entire crypto ecosystem.

K-LinePoet

2026-02-11 15:12:33

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Fund manager Michael Burry, famous for the movie “The Big Short,” warns that a sharp decline in Bitcoin prices could intensify into a self-reinforcing “death spiral,” causing lasting damage to companies that have accumulated Bitcoin over the past year. Since reaching a peak in October, Bitcoin has fallen about 40%. Burry wrote on Substack on Monday that further declines could quickly exacerbate the asset-liability pressure on major holders, forcing a sell-off across the entire cryptocurrency ecosystem and triggering a widespread collapse in value. If Bitcoin drops another 10%, Strategy will lose billions of dollars and “will find the capital markets essentially closed.” (Sina Finance)

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