bitcoin crash: Analyst backs ‘Big Short’ Michael Burry, says Bitcoin could crash 50% from here
He explained that people wrongly believe that Bitcoin cannot have bubbles because it is decentralized, but “it is not immune to human greed, leverage or liquidity shocks.” Deltan warned that what is happening now “could easily be the beginning of a 50% correction.”
Who is Michael Burry?
Michael Burry is the founder of Scion Asset Management and, as TheStreet notes, famous for correctly predicting the 2008 housing market crash, which was the story behind the Oscar-winning movie The Big Short. Burry is known as a contrarian investor, meaning he often goes against the market trend but still turns out to be right.
In the early 2000s, he shorted overvalued technology stocks before the dot-com crash. He then turned a $100 million fund into one of the biggest gains in Wall Street history by betting against subprime mortgages. He has since warned about passive investing, pandemic-era money printing, and speculative cryptocurrency booms.
On Oct. 31, Burry ended his two-year silence on social media with a short post about X: “Sometimes we see bubbles…sometimes the only winning move is not playing,” TheStreet reports. Burry didn’t name any assets, but his post came just as Nvidia hit a record $5 trillion market cap and AI stocks were surging, implying he was talking about an AI and tech rally.
Bitcoin’s slide reflects Burry’s warning
As of the report, Bitcoin (BTC) was trading around $99,400 after losing the key support level of $101,400. Technical traders believe this could be the start of a larger downtrend rather than a brief pause.ALSO READ: Bitcoin price is jumping today – Why is BTC rising today? As the global crypto market cap rises to $3.57 trillion, is Bitcoin about to peak again?Trader Lennaert Snyder wrote on The Crypto Fear and Greed Index dropped to 24 (“Extreme Fear”), its lowest level since the beginning of 2023. A month ago, it was 60 (“Greed”), which shows how quickly investor sentiment changes.
Investor Evan Luthra said of X: “Buying fear is literally free money. All you have to do is buy and wait.” As TheStreet noted, the CryptoQuant Bull Score Index also fell to zero, its lowest level since January 2022; just before the last bear market started.
“The bubble is real, it’s just delayed”
Trader Deltan said Bitcoin and AI markets are now “feeding on each other’s liquidity,” creating a “supercycle bubble” driven by cheap money, speculation and over-reliance on technology, according to The Street report. He warned: “The market has forgotten how quickly enthusiasm turns to fear. We’ve just seen altcoins at ridiculous valuations and even corporate treasuries chasing risk. The bubble is real; it’s just delayed by liquidity and hope.”
Deltan predicts Bitcoin could fall to around $50,000; This would represent a 50% correction from recent highs, similar to past mid-cycle declines. “This doesn’t mean that Bitcoin’s long-term story is broken. But it does mean that the parabolic phase is over. Now comes the part where the weak hands are wiped out.”
FAQ
Q1. Why does analyst Trader Deltan think Bitcoin could crash 50%?
Trader Deltan believes Bitcoin could fall 50% because he says the crypto and AI markets are in a bubble caused by greed, speculation and excess liquidity.
Q2. What did Michael Burry say about financial bubbles?
Michael Burry warned X that “sometimes the only winning move is not to play,” implying that both the AI and crypto markets could be in dangerous bubble territory.
