A crypto market analyst who goes by the name “Trader Deltan” told TheStreet Roundtable thatMichael Burry’s warning about bubbles might be “the most accurate thing anyone’s said this cycle.” Deltan said both the AI and crypto markets are in real bubbles, adding, “The AI bubble, the crypto bubble — they’re both real.”

He explained that people wrongly believe Bitcoin can’t have bubbles because it’s decentralized, but “it’s not immune to human greed, leverage, or liquidity shocks.” Deltan warned that what’s happening now “could easily be the start of a 50% correction.”

Who is Michael Burry

Michael Burry is the founder of Scion Asset Management and became famous for correctly predicting the 2008 housing market crash — the story behind the Oscar-winning movie The Big Short, as stated by TheStreet. Burry is known as a contrarian investor, meaning he often goes against the market trend but still ends up being right.
In the early 2000s, he shorted overvalued tech stocks before the dot-com crash. Later, he bet against subprime mortgages, turning a $100 million fund into one of the biggest wins in Wall Street history. Since then, he has warned about passive investing, pandemic-era money printing, and speculative crypto booms.

On October 31, Burry ended his two-year social media silence with a short post on X “Sometimes we see bubbles… sometimes the only winning move is not to play”, as per the report by TheStreet. Burry didn’t name any asset, but his post came just as Nvidia hit a record $5 trillion market cap and AI stocks soared, hinting that he was talking about the AI and tech rally.

Bitcoin’s slide mirrors Burry’s warning

As of the report, Bitcoin (BTC) was trading near $99,400, after losing its key $101,400 support level. Technical traders believe this could mark the start of a bigger downtrend rather than a short pause.

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Trader Lennaert Snyder posted on X, “The lows at $98,900 don’t look convincing either. If price reverses and reclaims $102,000, I’ll try to catch a small long toward $104,700 — but I’m playing low risk today because of the NFP data.” The Crypto Fear & Greed Index fell to 24 (“Extreme Fear”), the lowest since early 2023. A month ago, it was 60 (“Greed”), showing how fast investor emotions have changed.

Investor Evan Luthra said on X: “Buying the fear is literally free money. All you need to do is buy and wait.” The CryptoQuant Bull Score Index also dropped to zero, its lowest level since January 2022 — right before the last bear market began, as stated by TheStreet.

“The bubble is real, it’s just delayed”

Trader Deltan said Bitcoin and AI markets are now “feeding off each other’s liquidity,” creating a “supercycle bubble” driven by cheap money, speculation, and overconfidence in tech, as per the report by The Street. He warned, “The market forgot how fast euphoria turns to fear. We just saw altcoins at absurd valuations, and even corporate treasuries chasing exposure. The bubble is real — it’s just delayed by liquidity and hope.”

Deltan predicts Bitcoin could drop to around $50,000, which would mean a 50% correction from recent highs — similar to past mid-cycle drops. He added, “It doesn’t mean Bitcoin’s long-term story is broken. But it does mean the parabolic phase is over. Now comes the part where the weak hands get washed out.”

FAQs

Q1. Why does analyst Trader Deltan think Bitcoin could crash 50%?

Trader Deltan believes Bitcoin could fall 50% because he says the crypto and AI markets are in a bubble driven by greed, speculation, and too much liquidity.

Q2. What did Michael Burry say about financial bubbles?

Michael Burry warned on X that “sometimes the only winning move is not to play,” hinting that both AI and crypto markets may be in dangerous bubble territory.