Bitcoin Tops $70,000 as Michael Burry Issues Crisis Warning
Burry pointed to similarities between the current selloff and the downturns of 2021-2022, warning that losses could strain balance sheets.
Quick overview
- Bitcoin fell to its lowest levels since 2021, with over $1 billion in outflows from BTC ETFs in three days.
- The crypto market rebounded sharply on Friday, with Bitcoin rising 15% to $70,150 and Ethereum increasing 13.2% to $2,045.
- Approximately $800 million in crypto positions were liquidated in four hours, contributing to a total of $2.67 billion in liquidations over the past 24 hours.
- Investor Michael Burry warned of a potential 'death spiral' for Bitcoin, citing similarities to previous market downturns.
Bitcoin plunged to 2021 lows on Thursday, while BTC ETFs recorded outflows of more than $1 billion over three days. However, the crypto market is staging a sharp rebound this Friday.
Cryptocurrencies reversed course aggressively toward the end of Friday’s session after suffering heavy losses in line with the selloff on Wall Street. Bitcoin (BTC) is rebounding 15% over the past 24 hours, climbing to $70,150.
Ethereum (ETH) is following the same trend, rising 13.2% to $2,045. Among altcoins, standout gains include XRP (+26.4%), ZCash (+20.9%), and Solana (+20%).
ETF Exodus and Mass Liquidations
The panic of previous sessions—which drove Bitcoin to its lowest levels since 2021—also hit exchange-traded funds linked to the leading cryptocurrency. Spot Bitcoin ETFs posted net outflows of more than $430 million on Thursday, marking a third consecutive day of negative flows and pushing cumulative withdrawals well above $1 billion. Over the past two weeks, only two sessions ended in positive territory.
At the same time, roughly $800 million in crypto positions were liquidated in just four hours, according to data from tracker CoinGlass, with the bulk concentrated in long (bullish) positions.
Industry analysts say this combination suggests investors were caught off guard by the price collapse and then poorly positioned for the rebound that followed during the Asian trading session.
In total, liquidations over the past 24 hours reached $2.67 billion, of which $2.31 billion came from long positions.
Michael Burry’s Warning
Amid the turmoil, Michael Burry—the investor made famous for betting against the U.S. housing market ahead of the 2008 crisis—warned that Bitcoin could enter a sustained “death spiral.”
In a post on his personal Substack, Burry pointed to similarities between the current selloff and the downturns of 2021 and 2022, warning that further losses could quickly strain the balance sheets of major crypto holders.
“Alarming scenarios are now within reach,” he wrote.
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