Michael Burry: “Bitcoin is ultimately nothing more than a speculative asset”…store-of-value debate reignited

Investor Michael Burry, who predicted the 2008 global financial crisis, has issued a scathing critique of Bitcoin’s nature as an asset in the wake of its recent sharp selloff, reigniting the debate over whether it can serve as a “store of value.”

According to Bloomberg on the 3rd (local time), Burry warned in a recently published newsletter that “as Bitcoin breaks below a key support level, a nauseating scenario that could lead to massive value destruction has come into view.” He argued the decline is difficult to dismiss as a simple price correction.

After its psychological support level gave way, Bitcoin at one point slid to around $72,000. That is more than a 40% drop from the all-time high logged in October last year. With market volatility widening, doubts are also growing about Bitcoin’s defensiveness.

Burry noted, “At current levels, even an additional 10% decline in Bitcoin would saddle companies holding large amounts of it with billions of dollars in losses,” adding that “in that case, raising funds in capital markets could be effectively cut off.” His view is that the financial stability of corporate Bitcoin holders could spill over into broader market risk.

He also drew a line under the prevailing belief that Bitcoin can function as a store of value as “digital gold.” He cited the fact that while gold and silver have repeatedly notched record highs amid geopolitical tensions and worries about a weaker dollar, Bitcoin has remained under pressure even in the same environment.

Burry concluded that “Bitcoin is ultimately a purely speculative asset.” As its decoupling from traditional safe-haven assets becomes more pronounced, analysts say the debate over whether Bitcoin can be regarded as a long-term store of value is resurfacing.