Bitcoin
Bitcoin and MicroStrategy on the brink of collapse? Peter Schiff Sounds Alarm for U.Today
U.Today – Against the backdrop of – to put it mildly – less than encouraging price behavior and, as a consequence, the entire crypto market, the voices of skeptics and critics of the new asset class began to publicly erupt again .
Thus, in a recent series of publications, Peter Schiff questioned the stability of cryptocurrency and MicroStrategy, raising concerns about the potential for a crash. Despite buying activity from 11 spot Bitcoin ETFs, Schiff highlighted that BTC has been trading sideways for over three months and is currently 11% below its March high.
He questioned market dynamics, asking those who have been selling Bitcoin whether ETF investors have been consistent buyers, and what could happen if these ETF buyers lost patience and started selling their holdings.
Schiff then speculates that hedge funds could play a key role in this scenario, suggesting that these funds could be buying Bitcoin or ETFs as part of a strategy to short MicroStrategy (MSTR), a company heavily invested in BTC under the leadership from CEO Michael Saylor. .
Schiff’s analysis implies a potential domino effect that could severely impact both Bitcoin and MicroStrategy. If hedge funds decide to cease trading, they will have to sell their cryptocurrency holdings. This influx of sales could lead to a sharp decline in the price of Bitcoin. Such a drop would, in turn, put additional downward pressure on MicroStrategy.