Michael Burry: Bitcoin Recovery & Current Price Outlook December 2025

Jakarta, Pintu News – Michael Burry, who famously predicted the 2008 subprime crisis, has again responded to criticism of his bearish views on Bitcoin in early 2021. He asserts that the criticism that often arises is a misunderstanding of how short positions in trading should function.

Parabolic Structure of Bitcoin

In early 2021, Michael Burry warned about the parabolic structure he saw in Bitcoin, which he thought was a sign of a major correction. Sure enough, Bitcoin experienced a sharp decline first in mid-2021 and then more severely throughout 2022, with a drop of more than 70% from its peak.

Burry emphasizes that the correction he predicted did happen. He argues that judging the validity of the short thesis years after the fact is a misrepresentation of trading. “You think there are short sellers holding that position for 5 or 10 years?” he asserted in a post.

Also Read: 5 Important Facts from Bitcoin’s (BTC) Latest Prediction: US$125,000 Target?

Criticism and Misunderstanding

According to Burry, many commentators and journalists, including from Bloomberg, often use his bearish examples in 2021 to say that he was wrong again and again.

However, Burry argues that this is a misleading framing and shows a misunderstanding of how shorts function. He also highlights how critics often only remember the parts of his track record that fit their narrative. This, according to Burry, is not about market literacy, but rather storytelling.

Bitcoin Recovery and Current Outlook

Currently, Bitcoin is trying to recover from its latest downturn. Recent charts show that the asset is still trading below its major moving averages after the massive sell-off in the fall, a structure that, if anything, makes Burry’s 2021 warning look more founded than revisionist commentary.

Burry also emphasized the 2023 regional banking crisis, where he saw no evidence of real systemic danger and expected the situation to stabilize. The crisis was eventually resolved far ahead of the panic, which, he said, reinforced his view.

Conclusion

Michael Burry, strongly defends his position and views on Bitcoin and financial markets in general. He urges critics and market watchers to understand the context and timing of any financial analysis, rather than just picking out the pieces that fit the narrative.

Also Read: 10 Ways to Learn Crypto from Zero: Basic Guide to Start Investing Safely

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FAQ

What were the main reasons Michael Burry criticized Bitcoin’s price structure in early 2021?

Burry argued that Bitcoin exhibited a parabolic structure, which he believed posed a high risk of a major correction. Market data later showed that Bitcoin fell more than 70% from its peak, corroborating his warning in that period.

Why does Burry defend his bearish position on Bitcoin?

He explains that critics of his views often misunderstand the concept of short positions, as a trader does not hold short positions for years. According to him, evaluating the short thesis several years after the fact is an erroneous framing.

What forms of misunderstanding does Burry highlight regarding media coverage?

Burry notes that some commentators and journalists, including those from Bloomberg, have only taken snippets of his track record that fit a particular narrative. He emphasized that the approach is more storytelling than market literacy.

How does the current state of the Bitcoin market reflect Burry’s previous warnings?

Bitcoin is still trading below its major moving averages after the last massive sell-off. This structure, according to technical analysis, suggests that the market is still in a recovery phase which supports Burry’s initial view of the risk of a correction.

What does Burry’s view of the 2023 banking crisis have to do with criticism of his position?

Burry mentioned that there were no systemic red flags in the 2023 regional banking crisis and he expected the situation to stabilize, which was later proven. He used this example to show that his views are often misinterpreted due to a lack of context by critics.

Reference

• U.Today. How Wrong I Have Been: Michael Burry Slams His Bitcoin Position Critics. Accessed on December 8, 2025