‘Big Short’ Michael Burry flags bitcoin pattern that predicts drop to low $50,000s

Michael Burry, the investor famous for the 'Big Short,' suggested that the current downturn in Bitcoin prices mirrors patterns seen during the severe 2022 bear market. By comparing Bitcoin's drop from a recent high of $126,000 to $70,000 with the late 2021/2022 plunge (which saw BTC fall from $35,000 to below $20,000), Burry implied that the current trajectory could lead to prices in the low $50,000s.

However, market analysts and traders expressed skepticism, questioning whether a single historical instance constitutes a meaningful pattern. They also pointed out that the underlying market conditions are significantly different now, citing the presence of spot Bitcoin ETFs and deeper institutional liquidity, contrasting with the 2022 collapse driven by aggressive Fed tightening and crypto leverage.

Despite the controversy, Burry's comments carry weight due to his history, though his chart functions more as a warning about failed rebounds and waning conviction rather than a precise prediction.

(Source：CoinDesk)