Michael Burry speaks out again: BTC plummet could trigger a financial chain reaction

BearMarketMonk · 2026-02-12T03:19:00+00:00

Renowned investor Michael Burry warns that publicly traded companies heavily invested in Bitcoin face systemic risks, believing that the argument of Bitcoin as "digital gold" is losing its validity. As institutional investors concentrate their holdings, market vulnerability increases, and risk management needs to be strengthened.

BearMarketMonk

2026-02-12 03:19:00

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Renowned investor Michael Burry recently expressed a rather provocative view, voicing deep concerns about the prospects of publicly traded companies heavily holding Bitcoin. According to NS3 reports, this investor, who gained fame for accurately predicting the 2008 financial crisis, is now turning his attention to the potential hidden risks within the crypto asset space.

Currently, Bitcoin is fluctuating around $67,470, and Burry’s warning resonates with many industry insiders—are companies relying on BTC as a key component of their asset allocation truly aware of the risks involved?

The Digital Gold Narrative Is Crumbling

Michael Burry believes that the value proposition of Bitcoin as “digital gold” is failing. Traditional gold has withstood centuries of tests for stability and liquidity, whereas BTC’s volatility and market liquidity differ fundamentally. In the event of a significant market correction, these differences could be magnified exponentially.

Concentration of Holdings and Systemic Risks

More concerning is the risk concentration due to institutional holdings. When multiple publicly traded companies, funds, and even some financial institutions allocate large sums into BTC, the market’s fragility is greatly increased. Burry hints that if prices collapse, the financial health of these companies could face deadly threats, potentially triggering broader systemic risks in the financial system.

Markets Must Stay Vigilant

While Burry’s views carry a tone of risk warning, they merit serious consideration from market participants. Regardless of the asset held, risk management should be a top priority. In the current Bitcoin cycle, moderate holdings and regular risk assessments may be wiser than blindly chasing gains.

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