Bitcoin’s Forced Selling Trap 😨

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Michael Burry is back!
And once again, he’s brought a flamethrower to a speculative party.

This time, the target is Bitcoin.

His warning?
A full-blown crypto death spiral — the kind that feeds on itself until everyone involved needs a stiff drink and a bankruptcy lawyer.

Burry’s core take is simple but brutal:

Bitcoin isn’t acting like gold.
It’s acting like leverage with WiFi.

Instead of protecting against currency debasement (the whole “digital gold” pitch), Bitcoin has revealed itself as a purely speculative asset. One that rises on good vibes and falls on math.

If this sounds familiar, it’s because Burry’s been singing this tune since the days of dog-eared copies of Margin of Safety sitting on stressed-out desks (the book he wrote before disappearing for years is still floating around here for the curious)

And math doesn’t care about your laser-eye profile pic….

Here’s the ugly chain reaction Burry’s pointing at:

• Price drops
• Corporate balance sheets shrink
• Lenders panic
• Forced selling kicks in
• Price drops more

Repeat until morale improves (it won’t).

Burry says if Bitcoin falls another 10%, Strategy Inc. — the largest corporate holder — would be billions underwater and effectively locked out of capital markets.

No refinancing.
No fresh cash.
Just tears and margin calls.

Go lower than that?
Miners start tipping into bankruptcy.

The most uncomfortable line in Burry’s warning:

There’s no organic use case forcing Bitcoin to stop falling.

Corporate treasuries?
ETFs?
Institutional adoption?

Nice narratives.
Not a price floor.

Markets don’t stop because the story sounds good.
They stop when selling stops.

And in a forced-selling loop… it doesn’t.

Yes, the White House is crypto-friendly.
Yes, institutions are involved.

And yet…

Bitcoin is down ~40% from its early-October all-time high.
It just hit its lowest level since Trump’s re-election, sliding to ~$70,000.

Turns out “number go up forever” wasn’t a risk management strategy.

This isn’t a “Bitcoin is dead” rant.

It’s a warning about structure.

When assets are:
• Widely leveraged
• Held on corporate balance sheets
• Priced on sentiment
• And financed with cheap money

Downturns don’t fade gracefully.

They cascade.

• Michael Burry says Bitcoin risks a self-reinforcing death spiral
• Falling prices could trigger forced selling by corporates and miners
• Another 10% drop could lock major holders out of capital markets
• ETFs and institutions don’t guarantee a price floor
• Bitcoin is down ~40% from its peak despite bullish narratives

Bitcoin volatility doesn’t stay in crypto. It leaks into balance sheets.
Companies holding BTC get hit twice: falling asset value + tighter funding.

📌 Action: Reduce or trim exposure to crypto-treasury stocks and miners after sharp BTC rallies. Re-enter only after BTC stabilises for multiple weeks.

When speculative assets wobble, markets quietly reprice certainty.
Burry’s warning highlights what survives stress: boring, profitable, liquid businesses.

📌 Action: Increase allocation to cash-generating sectors (utilities, consumer staples, healthcare) during crypto drawdowns. Let volatility elsewhere work in your favour.

Bitcoin often moves before risk appetite resets elsewhere.
Sharp BTC drawdowns = risk coming off across growth, tech, and small caps.

📌 Action: When BTC breaks key levels, pause new risk-on buys. When forced selling exhausts and BTC stabilises, slowly redeploy into quality growth at better prices. Let other people panic first.

Uber’s stock tried to take a trip to the moon.
Then ran out of gas…

Shares of Uber Technologies opened strong after earnings… and then quietly gave it all back. Why? Because Wall Street heard two things at once:

• Double-digit growth
• Softer profits ahead

And when those two fight, margins usually win.

CEO Dara Khosrowshahi sounded like a man who’s already picked out the champagne.

Uber, he said, kicked off 2026 with:

This thing is finally running like a real business.

Uber is still going hard on autonomous vehicles. And not in a “someday” way.

By end of this year, Uber expects AVs live in 15 cities, powered by partnerships with:

Management claims AVs on Uber’s platform are:

In other words: fewer humans, fewer excuses, more rides.

And because ridesharing is supply-led, more cars = faster rides = cheaper trips = more demand. It’s the Costco rotisserie chicken of transportation.

If you want the long-term mental model for how platforms quietly win while markets obsess over quarterly noise, this whole section reads like a case study straight out of The Psychology of Money, minus the metaphors.

Because profits blinked first.

Uber’s forward adjusted EBITDA margin guidance came in… fine. Just not spicy.

Yes, margins are still expanding.
No, they’re not expanding as fast as before.

Wall Street saw: “+20 basis points year-over-year expansion”

And responded with: “Cool. We wanted more.”

Uber is leaning into affordability:

Incoming CFO Balaji Krishnamurthy basically said: Lower prices now = stickier demand later

Which is true.
But it also means margins take a short-term punch to the jaw.

Insurance costs easing helps.
Scale helps.
AVs eventually help.

But investors hate the word eventually.

Forget the margin hand-wringing for a second.

Uber is quietly hitting new all-time highs across its core platform:

They’re digging a moat and filling it with water.

Uber isn’t trying to win the quarter.
It’s trying to own the map.

Uber sold off not because growth broke — but because margins paused. That’s classic short-term fear, not long-term damage.

📌 Action: Accumulate $UBER ( ▲ 1.75% ) on pullbacks when margin headlines hit. Scale in over multiple red days, not all at once.

Autonomous vehicles aren’t priced into earnings yet — but capital is flowing there. Uber is positioning itself as the AV distribution layer.

📌 Action: Build a paired long-term position: $UBER ( ▲ 1.75% ) + $NVDA ( ▼ 1.33% ). Uber captures demand; Nvidia sells the picks and shovels.

Cheaper rides, shared trips, predictable pricing — Uber is quietly leaning into value behavior, not luxury demand.

📌 Action: Tilt your portfolio toward consumer value platforms with pricing power (Uber-style models). Reduce exposure to premium discretionary names.