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Peter Schiff, a well-known financial commentator and critic of Bitcoin (BTC), has stirred up the broader cryptocurrency space with another bold statement about X. mailSchiff's current investment strategy has been criticized by market participants who are betting on... United States Government Investing in Bitcoin reserves.
Schiff paints a scenario of the looming crisis
Schiff noted that a “crisis” will occur when a new administration comes in and the government decides not to buy Bitcoin. He explained that this realization could spark panic among Bitcoin investors, especially those who bought the currency with the expectation of "their assets being taken out on top."
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The financial commentator argues that once the US government fails to purchase Bitcoin, these investors will engage in a massive sell-off of their holdings. Such a scenario would result in the market being flooded with the coin and the corresponding price falling.
Schiff expects that such an event could impose itself Accurate strategy To accelerate its leveraged position in the asset. Michael Saylor, CEO of the business intelligence firm, has invested heavily in Bitcoin using company funds, typically through leveraged trading. Therefore, it may continue to borrow to support large purchases to prevent a collapse in the market and prices.
However, Schiff predicts that Bitcoin's price will only stabilize temporarily despite this strategy, as it is largely unsustainable. He warns that this could lead to a more massive collapse in the long term, perhaps starting with MicroStrategy (MSTR) shares.
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.
Schiff's long-standing criticism of Bitcoin
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Schiff has repeatedly attacked Bitcoin as a speculative bubble, criticizing institutional players like MicroStrategy Bitcoin pumping. He believes the "bubble" will burst soon, and that the company led by Michael Saylor will collapse when there are no more willing buyers for its high-priced shares.
As of this writing, the price of BTC exchange The stock price reached $95,715, representing a decline of 5.55% over the past 24 hours. The asset rose to a high of $101,455.86 in Tuesday's trading session before experiencing market volatility.
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