"Big Short" Michael Burry: Current Bitcoin Trend May Repeat 2022 Bear Market Rhythm

Odaily News: "Big Short" Michael Burry indicated that the current Bitcoin decline exhibits similarities to the 2022 bear market phase, sparking discussions about the potential depth of this correction. Burry shared a chart on platform X, comparing BTC's drop from its high near $126,000 to around $70,000 with the early decline pattern of the 2021-2022 bear market. In the previous cycle, Bitcoin fell from approximately $35,000 to below $20,000 before gradually stabilizing. If measured by a similar percentage decline, some market participants believe the theoretical risk zone could point towards the $50,000 vicinity, although Michael Burry did not specify a clear target price. The market has also raised questions about the validity of drawing analogies from a single historical cycle. Some trading institutions noted that forming a "pattern" based on just one historical event has limited reference value. The current market environment differs significantly from 2021-2022, including institutional liquidity brought by spot Bitcoin ETFs, changes in market leverage structure, and a shift in the macro environment from an aggressive interest rate hike cycle to one dominated by cross-asset volatility. (CoinDesk)