Peter Schiff Says Bitcoin Could Be Headed for Another Crash
Schiff is targeting Michael Saylor’s Strategy, which holds 847,000 BTC and remains the largest public Bitcoin holder. He says stock financing and a possible sale could drag prices lower.
Key Takeaways
- Peter Schiff says Bitcoin could slide back to $20,000 and argues that anyone who does not sell now may end up regretting it.
- He takes issue with Strategy raising $450 million through stock sales while going three weeks without buying any Bitcoin.
- Schiff says a drop below $58,000 could send Bitcoin toward under $50,000 and, eventually, into the $30,000 to $20,000 range.
Peter Schiff is back to criticizing Bitcoin and Michael Saylor. The economist says the price could revisit $20,000 (€17,500), which would put it nearly 70 percent below current levels, and he argues that investors who stay in too long will regret not selling sooner.
Criticism of Strategy
Most of Schiff’s criticism is aimed at Strategy, the vehicle Saylor has used to build a position of more than 847,000 Bitcoin. That makes the company the biggest public holder of the asset. In his podcast, Schiff said the company sold 3,588 BTC last week, then went three straight weeks without adding any Bitcoin, even as it raised $450 million (€395 million) by selling common stock.
Schiff says that amounts to needless dilution for shareholders, especially because Strategy’s stock trades at a sharp discount to the value of its Bitcoin holdings. He also pointed out that the company has lifted its cash balance to $3 billion (€2.6 billion), while in his view choosing to issue shares instead of using its own reserves.
Why Schiff Stays Bearish
According to Schiff, Saylor is boxed into a difficult situation. If Strategy were to sell a meaningful amount of Bitcoin, he believes that would weigh on the market. But he also thinks traders already know a large sale would be hard to pull off, which means Bitcoin could face pressure even if no sale happens.
He pointed to resistance near $65,000 (€57,000) and support around $58,000 (€50,900). If that support breaks, he said, Bitcoin could move below $50,000 (€43,800) and eventually find a bottom somewhere between $30,000 (€26,300) and $20,000 (€17,500).
At the time of writing, Bitcoin is trading around $64,724 (€56,700), and the coin is up nearly 5 percent over the past week. Schiff also said he should have bought Bitcoin 15 years ago, but added that he does not regret missing the run over the past five years.
What This Means for Investors
The argument points to a bigger question that matters for European crypto investors too: how durable is the corporate Bitcoin model if stock or debt financing becomes more expensive? Strategy has previously funded its purchases in part with convertible debt and preferred stock, which has tied the company’s balance sheet and market value directly to the Bitcoin trade.
That makes Strategy’s story about more than just a clash between a Bitcoin skeptic and a longtime bull. For the broader crypto market, it shows that investors are watching not only the coin itself, but also the way large companies keep financing their positions. That same tension came up in the recent discussion about Strategy’s dollar reserve and Bitcoin position, where the company said it left its BTC holdings untouched while increasing its cash buffer.
