Cryptocurrencies are falling again, and the decline is hurting our portfolios amidst the growing debate over crypto liquidations and Michael Burley and his comments about Bitcoin. With cryptocurrencies falling and liquidations increasing across major assets, we are left wondering why Bitcoin is falling while traditional markets are rising.
What deepens the debate is how often Michael Burley takes a skeptical view of Bitcoin during these spikes in volatility, especially when the cryptocurrency is falling without any immediate negative factors. As the crypto market absorbs the recent wave of liquidations, the mood has changed from surprise to concern.
Cryptocurrency Fear and Greed Chart
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New crypto liquidations despite robust market
The strangest part of today’s liquidations is the inconsistency of assets. The Nasdaq is up, silver is up, the S&P 500 is in the green, but crypto is down. On this day, Bitcoin fell by 3%.
All of the above has intensified the rush of liquidations and triggered a chain reaction reminiscent of the early crypto shakeout. Currently, Bitcoin has temporarily fallen to around $89,000, putting pressure on it just when we were hoping for it to stabilize and distance itself from its October highs.
Earlier in the day, bullish PCE data sparked a surge in BTC and ETH, but that momentum quickly dissipated. Within 30 minutes, nearly $100 million of long positions were wiped out in new crypto liquidations. In this session alone, the total amount was over $414 million.
(sauce – Clearing data, coin glass)
Looking back at the Flash Crash of October 10th, the scale of it becomes even clearer as Bitcoin plummeted from $126,000 to $110,000 and a staggering $19 billion of funds were liquidated on that day. Since the tragic event, a series of sell-offs have resulted in the unwinding of more than $637 million in additional positions. To say that cryptocurrencies are falling feels like an understatement.
However, despite the turmoil, the market capitalization of cryptocurrencies is still hovering near $3.1 trillion, recovering from a low critical level of $2.9 trillion. While these levels often mark a turning point, crypto liquidations prolong volatility and weaken confidence.
(sauce – Total virtual currency market capitalization, TradingView)
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Michael Burley, Bitcoin skepticism emerges as cryptocurrency declines
In his first interview in over 10 years, his criticism of Michael Barry is brutal. Burley likened Bitcoin to a tulip bulb, saying it was worthless and prone to crime.
He compared Bitcoin to gold, which he has considered a stable store of value since 2005. His bearish stance is a game-changer at a time when cryptocurrencies are falling and sentiment is already feeling fragile.
“Bitcoin has no value. It’s the tulip bulb of our time,” Michael Burley, of “The Big Short” fame, said in his first interview in more than a decade. pic.twitter.com/ge1zteSVqS
— Documenting ₿itcoin 📄 (@DocumentingBTC) December 4, 2025
Michael Burley predicts a crash worse than the dot-com bust, not just for Bitcoin, due to overvaluation and rising consumer debt. His short positions in Nvidia, Tesla, and Palantir, as well as the fund’s deregistration, have sparked debate about whether the market is too high. But critics say these companies are still making profits.
Countering this melancholy is Samuel Benner’s 1875 cycle chart. He says 2023 will be a tough year and a great time to accumulate risk assets, including cryptocurrencies (if they were available in his time), with a market peak expected in 2026. Even as cryptocurrencies are currently on the decline, this pattern presents an opportunity for cryptocurrencies to collapse within a year, if at all.
Benner 1875 Cycle Chart
So while the market waits, cryptocurrencies continue to fall and liquidate, but experienced cycle traders argue that recoveries often begin exactly where fear peaks, where traders least expect it.
Santa Claus is coming to town this Saturday, so enjoy the weekend by touching the grass and decorating your Christmas tree.
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XRP Price Prediction: Investor Anxiety Reaches Highest Since October — What’s Going On?
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Public sentiment towards XRP has fallen to its lowest level since October, returning to what Santimento calls the “fear zone.” With the market becoming volatile, this change has people wondering where XRP will actually go next.
But Santiment also makes an important point. Historically, when sentiment drops this much, XRP has often followed suit with strong gains. So while there is a lot of uncertainty, this kind of fear has set the stage for major reversals in the past.
(Source: Santiment)
The last time we saw such bearish sentiment was on November 21st, when XRP soared 22% over the next three days. Then greed set in and the rally stalled. At the moment, the situation is very similar to what it was two weeks ago, and another opportunity may be forming.
Read the full story here.
2x Leverage SUI Crypto ETF Greenlit by SEC: Bitcoin Layer 2 Next?
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The SEC’s approval of the new 2x Leveraged SUI Crypto ETF comes at a good time. Just when the market appears to be hungry for the next regulatory surprise.
This green light gives SUI another boost in institutional investor attention, and the arrival of leveraged crypto ETFs on the Nasdaq gives traditional investors a way to ride SUI’s daily movements without touching the token itself.
The hammer also comes as a sign that regulators are gearing up for the introduction of altcoin ETFs after months of approvals across crypto markets, adding fuel to Sui’s ever-growing efficient network.
Read the full story here.
Hawk Tuah Girl Crypto Coin: Aftermath
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Will Hawk Tuagirl’s virtual currency be revived? ‘Hawk Tua’ star Hayley Welch, whose 2024 catchphrase went viral on the internet, is currently facing a very real legal issue.
If you don’t remember:
- Welch carried out the cryptocurrency Ragpull scam
- She chose that path after stealing millions from her followers.
It didn’t actually amount to millions. She probably got hundreds of thousands, which is not bad, but destroyed her “career” as a result. Meanwhile, in a new development, Welch has been added to a federal class action lawsuit for playing a key promotional role in the failed HAWK token.
Read the full story here.
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