Today the Bitcoin price saw a sharp drop. This got prominent economist and Bitcoin critic Peter Schiff excited. Schiff issued a stern warning about a potential BTC price crash. He suggested that such a drop would severely impact institutional investors, especially MicroStrategy, the largest institutional owner of Bitcoin. Schiff’s comments came after MicroStrategy’s MSTR shares lost nearly 10% of their value, as well as Bitcoin suffering a 7% price drop in a single day.
Peter Schiff: Bitcoin price and MicroStrategy are headed for collapse!
As you have been following on Kriptokoin.com, the Bitcoin price has seen a sharp drop today. This collapse took an interesting turn with a recent post by gold bug Peter Schiff. Schiff claims that speculation that the US government will potentially buy Bitcoin has prompted some investors to enter the market. However, he notes that the government has no intention of backing Bitcoin. Therefore, he argues, these investors will sell their holdings. Schiff predicts that this will trigger a wave of selling pressure. Therefore, he warns, this will push the price of Bitcoin even lower.
At the center of Schiff’s criticism is the CEO of MicroStrategy.
ling. So, we have Michael Saylor, one of Bitcoin’s most prominent institutional backers. Saylor borrowed heavily to build a large Bitcoin position, counting on Bitcoin’s long-term price rise. Schiff argues that this strategy is risky. According to him, if the Bitcoin price continues to fall, Saylor may be forced to make additional purchases to prevent a market crash. Schiff sees this as a temporary correction that will lead to the collapse of Saylor’s leveraged position.
MicroStrategy’s $2 Billion Fundraising Plan
MicroStrategy recently issued perpetual preferred stock in early 2025. It announced plans to raise $2 billion in this round. The company plans to use these funds to buy more Bitcoin and strengthen its finances. This move emphasizes Saylor’s confidence in Bitcoin. On the other hand, Schiff argues that a significant price drop could leave MicroStrategy overextended, potentially forcing it to sell assets at a loss.
Bitcoin price and MSTR stocks under pressure
Bitcoin’s price fell below $95,000, marking a 7% drop in the last 24 hours. In the process, its market capitalization fell to $1.88 trillion. The Relative Strength Index (RSI) is currently at 46.88. This suggests that the bears are in control of the daily price action. Shares of MicroStrategy (MSTR) also saw a drop of nearly 10% from the previous session. Thus, it took a heavy hit. It saw an additional drop of 2.46% in pre-market trading. This reflects investor uncertainty as market pressures mount.
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