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

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.

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.

Bitcoin breaks down below $73K, now in the lower 72s, getting even further below the Michael Saylor Strategy B average $BTC purchase price of $76,000. Not looking good for $MSTR. pic.twitter.com/bkui2TxTvY

— KrissPax (@krisspax) February 4, 2026

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.”