Michael Burry Forecasts Multi-Billion Losses, Tokenized Metals Collapse if Bitcoin Falls Further

Renowned investor Michael Burry issued a stark warning on Monday regarding Bitcoin's market trajectory, according to BlockBeats. He noted Bitcoin's over 40% decline from its early October all-time high, cautioning that an additional 10% drop could result in multi-billion-dollar losses for Strategy and severely restrict access to capital markets. Burry asserted Bitcoin's nature as a purely speculative asset, not a hedge, and predicted that further weakness could trigger catastrophic spillovers into broader markets, including a collateral death spiral in tokenized metals futures. He also highlighted that the launch of spot ETFs has intensified speculative behavior, pushing Bitcoin's correlation with the S&P 500 near 0.50, with ETFs recording significant outflows since late November.