Gold proponent and renowned economist Peter Schiff has predicted that MicroStartegy’s MSTR stock could eventually crash. Such a development would be significant for Bitcoin, considering how much stake the software company and its co-founder, Michael Saylor, have in the BTC ecosystem.
Peter Schiff Predicts MSTR Crash
Schiff predicted in an X post that an MSTR price crash could eventually occur. This came following his statement that the stock has to be the most overvalued in the Morgan Stanley Capital International (MSCI) World Index. According to the Gold advocate, a “real bloodbath” will occur when MSTR finally crashes.
Indeed, an MSTR crash could cause some bloodbath for Bitcoin, as it would undoubtedly serve as a black swan event for the flagship crypto. This is based on MicroStrategy’s investment in the flagship crypto. The software company is currently the fifth-largest Bitcoin holder, with 252,220 BTC, only behind Satoshi Nakamoto, Binance, BlackRock, and Grayscale.
Therefore, an MSTR crash like Peter Schiff predicts could negatively impact the Bitcoin price since the software company may offload its BTC holdings depending on the extent of the crash. Considering that the company holds over 1% of the flagship crypto’s total supply, that will put significant selling pressure on the coin.
Michael Saylor Says They Are Never Selling
Despite Peter Schiff’s prediction about an MSTR crash and concerns about how it could impact BTC, it is worth mentioning that MicroStrategy’s co-founder Michael Saylor has indicated that they never plan to sell their Bitcoin holdings. He told Bitcoin skeptics like Peter Schiff that MSTR is the “perfect instrument” to short if they really hate the flagship crypto.
Saylor promised they wouldn’t sell their BTC and would be leveraged long on the flagship crypto. He also remarked that he was no longer concerned about people shorting the MSTR stock. The tech founder noted that his company has been consistent in their policy of buying and holding on to Bitcoin and that it was up to the company’s shareholders to determine if they wanted to trade their shares.
Peter Schiff’s comment on MSTR no doubt stems from the fact that the stock has outperformed every stock in the S&P 500 and even Bitcoin. The stock is up over 1,000% since MicroStrategy adopted a Bitcoin Strategy in August 2020. MarketWatch data also shows that MSTR is outperforming other assets this year alone, with a year-to-date (YTD) gain of 249%.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
By CoinGape
Source: CoinGape
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