Michael Burry Warns About Bitcoin Cycles: Is an Immediate Recovery After Volatility?

The renowned investor Michael Burry, whose prediction of the 2008 collapse propelled him to fame, is now turning his attention to the cryptocurrency market. Through his analysis, Burry draws a revealing parallel between current Bitcoin movements and the historic crash experienced by the digital asset in 2022.

The Contrarian Investor’s Perspective: Michael Burry and Market Analysis

Michael Burry has been widely recognized for anticipating financial crises when others remain indifferent. His contrarian approach to market consensus provides him with a unique perspective on economic cycles. This time, his observations on Bitcoin suggest that the current volatility is not an anomaly but part of a predictable pattern characteristic of digital assets.

Cycle Comparison: From 2022 to Present

During the 2022 collapse, Bitcoin experienced an approximate 50% loss in valuation before stabilizing. This event marked a critical point in the asset’s history, where many investors questioned the future of cryptocurrencies. Today, with Bitcoin facing short-term fluctuations (registering a 1.40% drop in the last 24 hours according to data from February 13, 2026), similarities emerge in market sentiment and the psychological dynamics of participants.

Bitcoin Recovery Patterns: Lessons from the Past

Michael Burry’s analysis suggests that Bitcoin could follow a recovery trajectory similar to what it exhibited after the 2022 crash. This hypothesis highlights the importance of understanding the historical cycles of the cryptocurrency market. Investor psychology plays a decisive role: during panic periods, herd behavior exacerbates declines, but these same conditions lay the groundwork for future recoveries.

The volatility we are witnessing today should not be interpreted as a sign of an irreversible collapse but as an opportunity to observe how historical patterns repeat. Michael Burry, with his proven track record in identifying extreme cycles, suggests that attentive investors could anticipate significant changes before market consensus does.