Canadian Billionaire Warns of Potential Bitcoin Price Drop

Summary: Canadian billionaire Frank Giustra has expressed concerns that Bitcoin could see a significant price drop if treasury companies that borrowed funds to acquire Bitcoin encounter financial difficulties. His warnings echo broader market unease, as noted by Bloomberg analysts.

Key Takeaways

Frank Giustra predicts that Bitcoin's price could fall sharply if treasury companies face financial issues.
He emphasizes caution in the cryptocurrency market, countering bullish sentiments.
Technical indicators from Bloomberg suggest a potential downturn, with predictions of Bitcoin dropping down to between $45,000 and $50,000.
Historical comparisons are being drawn to the 1980s silver crash, indicating possible trends for Bitcoin and other digital assets.

Canadian Billionaire Warns of Potential Bitcoin Price Drop

Giustra's Concerns About Bitcoin

Frank Giustra, a well-known Canadian business tycoon, mining financier, and philanthropist, has made a bold prediction concerning Bitcoin. He believes that treasury companies that have borrowed money to purchase Bitcoin may eventually encounter financial strain. If this happens, these companies might have to offload their large Bitcoin holdings onto the market, leading to a steep price decline.

Giustra remarked, "If the Bitcoin treasury companies get into trouble, there will be an unwinding, and Bitcoin will trade a lot lower." He also added, "If I am wrong, it won’t change my life."

These comments were made during a spirited discussion on X (formerly Twitter) late Thursday, which was prompted by a statement from political commentator Bo Hines. Hines argued that "anyone bearish on Bitcoin heading into 2026 is foolish," to which Giustra responded, indicating that exercising caution is a sensible approach, rather than simply "gambling."

The shares of Strategy, a leading Bitcoin treasury firm, experienced a drastic decline in 2025, falling by over 50%. Giustra had previously criticized Strategy CEO Michael Saylor, labeling him as a "Bitcoin charlatan."

Technical Analysis and Market Trends

Giustra’s concerns about Bitcoin have been mirrored by recent technical analyses, which suggest troubling signals for digital assets. Bloomberg Intelligence's Senior Commodity Strategist, Mike McGlone, pointed out that Bitcoin appears to be facing a "down year," as indicated by its 50-week moving average—this metric tracks the average price of the asset over the past year and compares it to the current price.

McGlone has highlighted that historically, if Bitcoin trades at a significant discount to this moving average, it risks a more substantial decline. He projects a potential "lower trough near a 55% rebate."

If McGlone's forecasts are accurate, and if Bitcoin's price drops from its current level of $87,000 to the "55% rebate" range, which falls between $45,000 and $50,000, treasury companies would face a stark reduction in the value of their holdings.

Additionally, McGlone has been predicting adverse market conditions for silver as well. He draws parallels to the 1980 silver bubble associated with the Hunt Brothers, noting that when silver was similarly "stretched" in 1980, it imploded by 52% during that same year.

In conclusion, both Giustra and McGlone highlight the necessity for caution in the volatile world of cryptocurrencies, underscoring potential risks ahead for Bitcoin and its market participants.