Michael Burry, the investor known for predicting the 2008 financial crisis, warned Monday that Bitcoin (BTC) could fall to $50,000 and trigger mining bankruptcies while research firm Tiger Research argued the current market decline does not constitute a crypto winter.
What Happened: Burry Warns of $50K Bitcoin
Burry estimated that up to $1 billion in precious metals were liquidated at the end of January as institutional investors rushed to cover cryptocurrency losses. He wrote that there is "no organic use case reason for Bitcoin to slow or stop its descent."
The "Big Short" investor warned that if BTC falls to $50,000, mining firms could face bankruptcy and the market for tokenized metals futures could "collapse into a black hole with no buyer." Bitcoin touched $73,000 on Tuesday, marking a 40% decline from its October peak above $126,000.
Burry's concerns find support in the struggles of crypto-treasury companies.
Strategy, led by Michael Saylor, is sitting on paper losses after BTC fell below its average purchase price of approximately $76,000, recording $17.44 billion in unrealized losses in the fourth quarter.
BitMine Immersion Technologies, backed by Peter Thiel and chaired by Tom Lee of Fundstrat, holds 4.3 million Ethereum (ETH) purchased at an average price of $3,826 — now worth around $2,300, representing over $6 billion in unrealized losses.
Also Read: Binance SAFU Fund Loads Up On $100M Bitcoin Within One Hour
Why It Matters: Different From Past Winters
Tiger Research argues this downturn differs fundamentally from previous crypto winters. Past declines — 2014's Mt. Gox hack, 2018's ICO bust, 2022's Terra-FTX collapse — erupted from internal industry failures.
"We didn't create the spring, so there is no winter either," the report states. Both the 2024 rally and current decline were driven by external factors: ETF approvals, tariff policies and interest rate expectations. The firm concluded that "a crypto season where everything rises together is unlikely to come again" and that the next bull run "will not come for everyone."
Read Next: Bitcoin Whales Buy The Dip Amid $2.5B Liquidations