The latest Bitcoin plunge has had the world on its toes, with the asset showing an extremely volatile stance as of late. Bitcoin has been projecting a low price threshold, with investors worrying over the fact that its current sensitive nature could push it down to explore further lows. Moreover, the current Bitcoin crash narrative has fueled another theory, as investor Michael Burry warns of a potential Bitcoin slide scenario that may end up wiping out companies.
Also Read: Bitcoin Reclaims $78,000 After Trump’s Pro-Crypto Remark
Bitcoin Crash Narrative Spelling Bankruptcy for Companies
Investor Michael Burry, in his latest Substack post, has emphasized the current Bitcoin dip scenario. Burry shared how companies like Strategy may ultimately spiral out of control, among other reasons, if Bitcoin falls below the $70K mark. Among other things, Burry emphasized how recent crops in gold and silver may also signal a brewing BTC drop on the cards for the markets to witness.
“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,” he wrote.
Moreover, Burry shared how crypto miners may also go bankrupt in this case, with the metal market breaking into shambles as well.
“Tokenized metals futures would collapse into a black hole with no buyer. Physical metals may break from the trend on safe haven demand,” he added.
Bitcoin Crash Narratives Gain Momentum
In addition to this, Galaxy Research Digital Head Alex Thorn has also outlined a similar Bitcoin crash scenario. Thorn emphasized how Bitcoin’s recent weakness in its value stance may end up pushing Bitcoin to explore the $58K mark.
“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 $63k). There’s a significant gap in on-chain ownership between $82k and $70k, which may increase the likelihood that Bitcoin trades lower in the near term to test demand in that range. The realized price is around $56k, and the 200-week moving average is around $58k (note that these metrics climb higher every day that BTCUSD trades above them).” Thorn’s article was later shared.
Also Read: Volatility Sends Bitcoin Price Crashing: Analyst Sees $62K or $200K
