 ▲ Bitcoin (BTC) |
Michael Burry, the real-life figure portrayed in the film “The Big Short” and famed for betting on market downturns, has admitted that he missed the opportunity to buy Bitcoin (BTC) in 2013 while strongly warning that the current market overheating could become a death spiral leading to the ruin of institutional investors.
According to crypto media outlet U.Today on Feb. 22 (local time), Michael Burry, founder of Scion Asset Management, revealed his investment track record over the past 26 years through his X (formerly Twitter) account, Cassandra Unchained. In a rare confession, he said he considered purchasing Bitcoin in 2013 but ultimately “slept” on it and failed to act. While listing his historic successes—including shorting Amazon in 2000 and buying Apple in 1998 and 2002—Burry acknowledged that he missed an early entry opportunity in Bitcoin. However, separate from that regret, he delivered a grim assessment that the current Bitcoin market is repeating the same pattern seen just before the collapse between 2021 and 2022.
According to the BTC Patterns chart shared by Burry, Bitcoin could peak at $126,000 in October 2025 before plunging to around $73,000. Mirroring the roughly 50% crash observed in the previous cycle, Burry characterized such a correction not as mere volatility but as the opening salvo of a collapse that would crush overleveraged institutional investors. He specifically warned that companies like Strategy, which hold large amounts of Bitcoin, could be caught in a death spiral triggered by a decline in collateral value if prices fall sharply.
Burry’s current portfolio also reflects an extremely defensive stance not only on Bitcoin but on technology stocks driving the artificial intelligence boom. He disclosed that he holds put options on high-flying stocks such as Nvidia and Palantir, which profit if prices decline, criticizing these companies for allegedly inflating profits by artificially extending hardware lifespans. Just as he once overlooked Bitcoin’s long-term potential in 2013, Burry now views the institutional stockpiling of AI chips and Bitcoin not as permanent adoption but as a temporary speculative frenzy.
Despite the accelerating institutionalization of the digital asset market, Burry predicted that aggressive Bitcoin accumulation by institutions could ultimately become a self-destructive move that heightens market vulnerability. “I have been right about almost every major event over the past 26 years,” Burry emphasized, asserting that his market insight remains valid. His warning has poured cold water on prevailing optimism as Bitcoin surpassed $100,000, and given his track record of foreseeing past financial crises, market participants remain on edge.
Burry is convinced that the current bubble fueled by cryptocurrencies and artificial intelligence will end no differently from the dot-com bubble or the subprime mortgage crisis. If Bitcoin reverses near $126,000 as he predicts, a chain reaction of institutional bankruptcies driven by extreme leverage could become unavoidable. Investors are closely comparing Burry’s downside scenario with the liquidation levels of major institutions such as Strategy in preparation for potential market turmoil.
Disclaimer: This article is for investment reference only, and no responsibility is assumed for investment losses resulting from reliance on it. The content should be interpreted for informational purposes only.