What happens if Bitcoin keeps dropping? Expert predicts ‘worst case scenario’

0

Last Updated on 5 February 2026 by CryptoTips.eu

Bitcoin briefly dipped below $70,000 on various trading platforms this week, marking the first time this has happened since November 2024. What would happen to the broader stock market and crypto-related stocks if Bitcoin’s price dips further? Michael Burry, the investor who made a billion dollars betting against the US housing market in 2008, shared his thoughts.

Advertentie.

Strategy

Earlier this week, Burry argued that Bitcoin’s falling price could quickly strain the balance sheets of large crypto holders, leading to a sell-off of the entire crypto ecosystem.

According to Burry, if Bitcoin were to fall below $70,000, it could lead to significant losses in the financial sector. Strategy, Michael Saylor’s iconic crypto treasury, would then face losses of over $4 billion, while capital markets would close up for the company.

Other companies (such as MetaPlanet) would likely suffer a loss of 15% to 20% on their Bitcoin holdings.

$60,000 to $50,000

If Bitcoin falls below $60,000, Burry says it will be an “existential crisis” for Saylor’s Strategy.

In the worst-case scenario, if Bitcoin were to fall to $50,000, crypto mining companies like Mara and Riot would likely face serious cash-flow problems as well.

This isn’t the first time Michael Burry has spoken negatively about Bitcoin, which he calls “the tulip bulb of our time.”

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
View all posts