Noted Bitcoin critic Peter Schiff recently claimed that MicroStrategy’s Bitcoin strategy would end in disaster.
MicroStrategy, a publicly traded technology company in the US, continues to buy Bitcoin through bond sales and debt. MicroStrategy’s chairman Michael Saylor said that the company will buy more BTC with the vision of Satoshi Nakamoto.
The purchases made by MicroStrategy contributed to the company's stock MSTR and BTC.
Schiff, known for his negative comments about Bitcoin, argued that when institutional purchases stop, the market will lose a significant source of demand, which will lead to a rapid decline in the BTC price. Schiff argued that institutional demand, especially MicroStrategy, should be closely monitored during this period.
Schiff touched on MicroStrategy and Bitcoin relationship
Stating that the BTC price rose with institutional demand, especially from spot Bitcoin ETFs and MicroStrategy, Peter Schiff warned investors to be cautious against a major collapse.
UToday argued that purchases made by MicroStrategy represent a small portion of worldwide BTC transactions and that no single entity can dominate the market.
Bitcoin trades in light of a multitude of factors, including adoption rates, overall investor sentiment, and macroeconomic conditions.
According to the analysis prepared by UToday, Bitcoin's Relative Strength Index (RSI) has cooled down after the recent declines. The analysis included the following statements;
“The cooling down in the RSI suggests a healthy pullback following overinflated market conditions.”
According to the analysis, if the BTC price maintains the $90,000 support, it will rise to $95,000. Losing that support point will push BTC to $87,000.
