PakGazette – Peter Schiff, a financial commentator and well-known (BTC) critic, has shaken up the broader cryptocurrency space with another bold statement about X. In a post, Schiff criticized the current investment strategy of market participants who They bet on the US government investing in a Bitcoin reserve.
Schiff paints a scenario of imminent crisis
Schiff noted that a “crisis” would occur when the new administration came together and the government decided not to purchase BTC. He explained that realizing this could cause panic among Bitcoin investors, particularly those who purchased the currency in anticipation of “advancing” their assets.
The financial commentator maintains that once the US government stops buying Bitcoin, these investors will make massive sales of their holdings. Such a scenario would result in the market being flooded with the coin and a corresponding drop in price.
Schiff predicts that such a development could force MicroStrategy to accelerate its leveraged position in the asset. Michael Saylor, CEO of the business intelligence firm, has invested heavily in BTC using company funds, typically through leveraged trading. Therefore, it could continue to borrow to support large purchases and avoid a market and price decline.
However, Schiff predicts that the BTC price will only stabilize temporarily despite this strategy as it is highly unsustainable. He warns that it could lead to a more massive decline in the long term, possibly starting with MicroStrategy (MSTR) stock.
He insists that MSTR will collapse first due to its heavy dependence on Bitcoin. Once that trigger is pulled, Bitcoin will naturally follow as the broader market reacts.
Schiff’s long-standing criticism of Bitcoin
Schiff has frequently attacked Bitcoin as a speculative bubble, criticizing institutional players like MicroStrategy for pumping BTC. He believes that the “bubble” will burst soon and that the company led by Michael Saylor will collapse when there are no longer buyers willing to buy its overvalued shares.
At the time of writing, the BTC price was trading at $95,715, representing a drop of 5.55% in the last 24 hours. The asset had soared to a high of $101,455.86 in Tuesday’s trading session before being hit by market volatility.
