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Michael Burry Maps Bitcoin Slide to 2021–22 Pattern, Warning of Risk Toward Low $50,000s

Traders challenge the comparison because today’s market has spot ETFs and deeper institutional liquidity than the last collapse.

Overview

  • On February 5, Burry posted a chart on X comparing the current decline from October’s $126,000 peak to the 2021–22 plunge, implying potential downside into the low $50,000s.
  • He did not give a precise target, and a February 3 Substack post warned of “sickening scenarios” if prices fell another 10% from early-week levels.
  • Bitcoin traded near $66,000 on Thursday after sharp swings this week, extending a slide that has cut roughly half from last year’s record.
  • Technical readings reported in coverage point to a bearish trend and a descending channel, with about a 25% further drop needed to reach the $50,000 zone.
  • Skeptics, including trading firm GSR, question the predictive value of a single historical analog, noting the prior crash occurred under very different market conditions.