Michael Burry, the legendary investor immortalized in The Big Short for predicting the 2008 housing crash, has issued a stark warning about Bitcoin’s future. In early February 2026, as Bitcoin plunged below $73,000 from highs above $120,000, Burry highlighted the growing risk of widespread bankruptcies among Bitcoin miners.
Burry’s concern centers on the economics of mining. The 2024 Bitcoin halving cut block rewards in half, while energy costs remain high and operational expenses continue to rise. At current prices, many miners are operating at a loss. A further decline—to the $50,000–$60,000 range—could force miners to sell Bitcoin holdings or liquidate equipment to cover costs, triggering a potential “death spiral” of selling pressure that drives prices even lower.
This scenario echoes the 2022 crypto winter, when low prices led to miner capitulation and bankruptcies among highly leveraged firms. Burry warns that the fallout could extend beyond miners, stressing companies heavily exposed to Bitcoin, such as MicroStrategy, and even impacting tokenized asset markets.
Burry has long been a Bitcoin skeptic, previously comparing it to tulip mania and questioning its intrinsic value beyond speculation. His latest comments, shared amid a sharp market correction, reinforce his view that cryptocurrency lacks sustainable fundamentals.
Not everyone agrees with Burry’s dire outlook. Some analysts point out that miners have improved efficiency with newer hardware and diversified energy sources. Strong inflows into Bitcoin ETFs could also provide price support and stabilize the market.
As Bitcoin trades near multi-month lows on February 5, 2026, Burry’s warning serves as a reminder of the cryptocurrency’s volatility. Whether this marks the beginning of another prolonged bear market or a temporary dip remains uncertain, but the risks to miners are undeniably mounting.