Financial Commentator Peter Schiff Predicts MicroStrategy and Bitcoin Crash

Financial commentator and prominent Bitcoin (BTC) critic Peter Schiff has stirred up the wider cryptocurrency space with another bold statement about X. In a post , Schiff criticized the current investment strategy of market participants betting on the US government investing in the Bitcoin Reserve . Schiff outlines a scenario of impending crisis . Schiff stated that a “crisis” would occur when the new administration takes office and the government decides not to buy $BTC . He explained that this realization could cause panic, especially among investors who bought Bitcoin with the expectation of “pre-managing” their assets.

The financial commentator argues that if the US government fails to buy Bitcoin, these investors will engage in a massive sell-off of their holdings. Such a scenario would lead to the market being flooded with this money, leading to a price drop. Schiff predicts that such an event would force MicroStrategy to accelerate its leveraged position in the asset. The business intelligence firm’s chief executive officer, Michael Saylor, has made large investments in BTC using company funds, often through leveraged trading. As such, it may continue to borrow to support large purchases to prevent a market and price crash. However, Schiff predicts that despite this strategy, the BTC price will only stabilize temporarily, as it is highly unsustainable. He warns that in the long term, it could lead to a larger crash, possibly starting with MicroStrategy’s stock (MSTR). He insists that MSTR will crash first due to its heavy reliance on Bitcoin. Once this trigger is pulled, Bitcoin will naturally follow as the broader market reacts.