Peter Schiff Warns of Steep Bitcoin Decline as Strategy’s Gains Face Pressure

• Peter Schiff warns Bitcoin could crash, threatening Strategy’s massive holdings.
• Strategy’s shrinking premium heightens investor fears amid Bitcoin’s volatility.
• Gold’s surge strengthens Schiff’s confidence as Bitcoin faces mounting pressure.

Gold advocate Peter Schiff has reignited his criticism of Bitcoin, warning that the cryptocurrency could tumble to $75,000. According to Schiff, this potential decline would erase all of the recent paper gains accumulated by Michael Saylor’s firm, Strategy. His remarks followed Bitcoin’s latest sharp drop, which has once again stirred debate across financial circles about the sustainability of its current valuation.

Strategy currently holds more than 640,000 Bitcoin, making it the largest corporate holder of the cryptocurrency. Its average cost basis stands at $73,981 after its most recent purchases. Any slide below that level would likely put the company’s position at risk of temporary loss. Schiff emphasized that such a price collapse could expose how fragile the firm’s paper profits truly are.

Moreover, Strategy’s market premium over Bitcoin has already shrunk to 1.44 in late September. The narrowing gap has drawn investor criticism, particularly amid concerns over dilution from share sales. Schiff noted that if the situation persists, the company’s stock could begin trading at a discount, meaning shareholders might earn less from owning shares than from Bitcoin itself.

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Schiff Sees Possible Fallout for Michael Saylor’s Bitcoin Bet

Schiff, who has long been skeptical of Bitcoin, argued that Strategy’s aggressive buying strategy could backfire. He suggested that Saylor might one day need to sell part of his firm’s Bitcoin holdings to buy back company shares. However, Schiff acknowledged that such a move could trigger a market-wide sell-off, leading to a steeper decline in Bitcoin’s value.

Despite his critics, Schiff feels vindicated by gold’s recent surge. The precious metal has surpassed $5,000, marking its strongest performance since 1979. He stated that his earlier forecasts, often dismissed as overly optimistic, have now proven accurate in light of gold’s rally.

Schiff expressed confidence that investors are beginning to recognize his long-term predictions. He claimed that his outlook on gold and Bitcoin reflects deeper trends in market psychology, particularly the shift from speculative assets toward tangible stores of value.

Overall, Schiff’s latest comments underline his unwavering stance on the cryptocurrency market. While Bitcoin remains volatile, his renewed warnings are once again fueling discussions about whether the digital asset can sustain its long-term appeal amid growing competition from traditional safe havens like gold.

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