Peter Schiff, a prominent Bitcoin (BTC) critic and gold advocate, has shared his views on the cryptocurrency’s recent rally to $99,180.
According to Schiff, MicroStrategy, known for its Bitcoin buying strategy, is the main contributor to this surge.
Schiff cited the company’s recent move to raise $3 billion through convertible debt to bolster its Bitcoin holdings, suggesting that this massive infusion of liquidity was likely the primary catalyst for the bullish momentum.
Schiff added a warning that Bitcoin’s current rally could face challenges if MicroStrategy stops attracting new investors to buy its overvalued stock, or to finance its strategies with debt.
For the record, MicroStrategy is one of the largest holders of Bitcoin, and has used the cryptocurrency Bitcoin as a strategic treasury reserve.
Its moves are now closely linked to Bitcoin price dynamics, with the company raising billions of dollars through debt offerings, cementing its position as a major influencer in the market.
Schiff's criticism highlights the potential risks associated with leveraged buyouts by large companies like MicroStrategy.
Decreased institutional demand or changes in macroeconomic conditions could lead to significant volatility in the price of Bitcoin.
Despite the continued high trading volumes, the question remains: Can Bitcoin maintain its momentum and break the $100,000 barrier?
