Analyst says ‘Big Short’ Michael Burry’s warning is real, Bitcoin may crash 50%

A pseudonymous crypto market analyst known as “Trader Deltan” told TheStreet Roundtable that Michael Burry’s latest remarks about financial bubbles “might actually be the most accurate thing anyone’s said this cycle.”

“The AI bubble, the crypto bubble — they’re both real,” Deltan said. “The difference is that people think Bitcoin can’t have bubbles because it’s decentralized. But it’s not immune to human greed, leverage, or liquidity shocks. What we’re seeing now could easily be the start of a 50% correction.”

Who is Michael Burry

Michael Burry, founder of Scion Asset Management, became a household name after correctly predicting the 2008 housing market collapse,  a story immortalized in the Oscar-winning film The Big Short.

Known for his deep contrarian streak, Burry’s investment calls often challenge market consensus but have proven prescient over time.

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In the early 2000s, he shorted overvalued tech stocks just before the dot-com crash. Later, he bet against subprime mortgages while Wall Street was still celebrating them, turning a $100 million fund into one of the most successful trades in history.

Since then, he’s warned against the dangers of passive investing, pandemic-era money printing, and speculative crypto booms.

On Oct. 31, Burry broke nearly two years of social media silence with a single post on X (formerly Twitter):

“Sometimes we see bubbles… sometimes the only winning move is not to play.”

He didn’t name assets, but the timing — just as Nvidia hit a record $5 trillion market cap and AI-fueled stocks surged to euphoric levels — left little doubt what he was referring to.Michael Burry attends "The Big Short" New York screening Ziegfeld Theater on November 23, 2015 in New York City. (Photo by Astrid Stawiarz/Getty Images)

Bitcoin’s slide mirrors Burry’s warning

As of publication, Bitcoin (BTC) trades near $99,400, after losing the key $101,400 support level. Technical traders say the breakdown could signal a shift from consolidation to a broader downtrend.

“The lows at $98,900 don’t look convincing either,” trader Lennaert Snyder posted on X. “If price reverses and reclaims $102,000, I’ll try to catch a small long toward $104,700 — but I’m playing low risk today because of the NFP data.”

The Crypto Fear & Greed Index, a popular sentiment gauge, fell to 24 — “Extreme Fear” this week, its lowest level since early 2023. Just a month ago, it stood at 60 (“Greed”), reflecting how fast sentiment has flipped.

“Buying the fear is literally free money,” said investor Evan Luthra on X. “All you need to do is buy and wait.”

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CryptoQuant’s Bull Score Index has dropped to zero, its lowest level since January 2022. The last time the metric hit this point was immediately before the previous bear market began.

“The bubble is real, it’s just delayed”

According to Trader Deltan, the Bitcoin and AI markets are now “feeding off each other’s liquidity,” forming what he calls a “supercycle bubble” driven by cheap money, speculation, and misplaced faith in technology narratives.

“The market forgot how fast euphoria turns to fear,” he said. “We just saw altcoins at absurd valuations, and even corporate treasuries chasing exposure. The bubble is real — it’s just delayed by liquidity and hope.”

Deltan predicts Bitcoin could fall as low as $50,000, marking a 50% correction from recent highs, similar in magnitude to previous mid-cycle pullbacks.

“It doesn’t mean Bitcoin’s long-term story is broken,” he added. “But it does mean the parabolic phase is over. Now comes the part where the weak hands get washed out.”

Related: What is Crypto? Cryptocurrency explained

This story was originally reported by TheStreet on Nov 7, 2025, where it first appeared in the Trading News & Analysis section. Add TheStreet as a Preferred Source by clicking here.

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