Michael Burry warned in a recent Substack post that Bitcoin could fall below $70,000, threatening companies and crypto miners. He said interconnected portfolio margin accounts, tokenized metals futures and crypto collateral could drive the drop.
“These moves, if sustained, could result in Bitcoin breaking $70,000 because of this interconnected world of portfolio margin accounts, tokenized metals futures, and crypto collateral,” “Tokenized metals futures would collapse into a black hole with no buyer. Physical metals may break from the trend on safe haven demand,”
Alex Thorn, digital head at Galaxy Research, outlined a similar downside scenario and flagged deeper on-chain tests. According to Alex Thorn, “With the exception of 2017, Bitcoin has never experienced a 40% drawdown from all-time high that didn’t extend to 50+% from ATH within 3 months (a 50% drawdown from all-time high today would place BTC at $63,000). There’s a significant gap in on-chain ownership between $82,000 and $70,000, which may increase the likelihood that Bitcoin trades lower in the near term to test demand in that range. The realized price is around $56,000, and the 200-week moving average is around $58,000 (note that these metrics climb higher every day that BTCUSD trades above them).”
(Ed. note: The realized price and 200-week average referenced are on-chain metrics.)
Social posts summarized the warnings, including a Twitter thread by SwanDesk. Markets remain volatile and the cautions follow recent price swings.
