"The Big Short" Burry warns that a sharp drop in bitcoin prices could trigger a chain reaction.

Fund manager Michael Burry, known for the movie "The Big Short", warned that the sharp drop in the price of Bitcoin could exacerbate a self-reinforcing "death spiral" and cause lasting damage to companies that have been hoarding Bitcoin over the past year. Since reaching its peak in October, the price of Bitcoin has dropped by about 40%. Burry published an article on Substack on Monday, stating that further declines could quickly increase pressure on the balance sheets of major holders, forcing the entire cryptocurrency ecosystem to sell off and triggering a widespread collapse in value. If Bitcoin were to drop another 10%, Strategy would lose billions of dollars and would "find that capital markets are essentially closed".