Michael Burry, known for his role in "The Big Short," has drawn parallels between Bitcoin's current decline and the 2022 bear market. Burry shared a chart on the X platform, highlighting Bitcoin's fall from approximately $126,000 to $70,000, likening it to the 2021-2022 downturn when Bitcoin dropped from $35,000 to below $20,000. While Burry did not specify a target price, some market participants speculate a potential risk range around $50,000 based on similar decline ratios.
However, the comparison has sparked debate, with some questioning the validity of using a single historical cycle as a reference. Critics note that the current market environment, influenced by factors such as institutional liquidity from spot Bitcoin ETFs and changes in market leverage, differs significantly from the previous cycle.
Michael Burry Sees Bitcoin's Drop Mirroring 2022 Bear Market
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