Peter Schiff Warns of the Possibility of Bitcoin Price Collapse as Saylor's Strategy Backfires

Renowned economist and Bitcoin critic Peter Schiff recently warned of the possibility of a sharp decline in Bitcoin's price, which could lead to the loss of corporate investors, primarily MicroStrategy. His comments came as Bitcoin's price dropped nearly 7% in just one day. Additionally, MicroStrategy, the largest holder of Bitcoin, saw its stock price (MSTR) drop by almost 10%. Peter Schiff warns of potential collapse In a recent Twitter post, Schiff pointed out that when it becomes clear that the US government will not buy Bitcoin, many investors who bought in with the expectation of such a move may decide to sell. He believes this could trigger a selling pressure wave, potentially causing the price of Bitcoin to drop.

A key figure in this script is Michael Saylor, CEO of MicroStrategy, one of the company's strongest supporters of Bitcoin. Saylor has leveraged to build a large Bitcoin position, betting that the price of this cryptocurrency will continue to rise. According to Schiff, Saylor may be forced to accelerate the purchase of Bitcoin in a desperate attempt to prevent market collapse, which will only delay the inevitable collapse of his leverage position. Saylor's counterproductive strategy Schiff's warning focuses on the idea that Saylor's strategy of buying Bitcoin with borrowed money could ultimately backfire, leading to a collapse in the price of Bitcoin and the stock value of MicroStrategy. Recently, Saylor announced a plan to raise $2 billion by issuing perpetual preferred stock in the first quarter of 2025. This move is part of the strategy to acquire more Bitcoin and strengthen the company's financial position. This scenario could become even worse if the price of Bitcoin drops sharply, making it impossible for Saylor to protect his position and forcing him to liquidate assets at a loss. Bitcoin and MSTR prices have dropped significantly As of now, the price of Bitcoin has dropped below $95,000, reflecting a nearly 7% decrease in the past 24 hours, bringing the market capitalization down to $1.88 trillion. The relative strength index (RSI) is currently at 46.88, indicating that the selling side is controlling the price action of Bitcoin on the daily chart. Meanwhile, MicroStrategy (MSTR) shares closed at $341, down nearly 10% from the previous session. The stock also dropped about 2.46% in pre-market trading today.