A well-known gold advocate and consistent critic of cryptocurrencies has once again made sharp statements against the leading cryptocurrency and the strategy of Michael Saylor, co-founder of Strategy. The financier predicts a drop in the BTC price to $20,000, implying a decline of nearly 70% from current levels. Additionally, he expressed serious doubts about the wisdom of Strategy's decision to sell securities instead of its accumulated digital coins.

Schiff believes that Saylor has driven his company into a dead end. Investors holding bitcoins right now risk facing colossal losses in the near future.

Criticism of Strategy's Stock Sale

Under the brand Strategy (formerly MicroStrategy), Michael Saylor has purchased over 847,000 bitcoins. The company is the largest public investor in cryptocurrency. Schiff analyzed the company's latest financial moves in detail in a recent episode of his podcast, reaching predictably harsh conclusions.

Key facts from recent weeks:

  • Refraining from buying bitcoins for three weeks.
  • Maintaining positions after a recent profit-taking of 3,588 BTC.
  • Raising $450 million through an issuance of common stock.

As a result of the issuance, total reserve funds grew to $3 billion. However, the current market value of Strategy's securities turned out to be much lower than the valuation of the cryptocurrency portfolio on its balance sheet. Because of this, Schiff called the decision an illogical dilution of shareholder capital, as management preferred fiat money over its own promising reserves.

According to the economist, the company is in a dead end. Schiff believes that Saylor is afraid to sell bitcoins — any major exit from the asset would crash its price. The economist is confident that the market itself already understands this well.

"Saylor knows perfectly well: if he starts selling bitcoins en masse, the price will collapse. The problem is that the market would have dropped anyway, because everyone understands the trap he's in. Even if he doesn't sell a single bitcoin, the price could fall regardless of him. But he is so unwilling to sell the cryptocurrency that he is ready to sell his shares at a huge discount," Schiff noted in the podcast.

Why Schiff Expects Bitcoin to Crash to $20,000

The economist identified resistance around $65,000 and support at approximately $58,000, warning that if the price falls below this level, bitcoin could drop under $50,000. According to his estimate, the support zone is in the range of $30,000-$20,000 — levels bitcoin has not seen for many years.

The critic partially revised his previous stance. He admitted that if he had bought bitcoin 15 years ago, the decision would have been justified, but Schiff has no regrets about not investing in BTC over the past five years.

"I don't regret not buying it three, four, or five years ago... But 15 years ago, it was certainly worth getting," the economist admitted.

At the time of publication, bitcoin is trading just below $65,000. The coin has gained nearly 5% over the week.

The current discussions go far beyond Schiff's personal statements. Professional traders are now actively reassessing the overall concept of institutional cryptocurrency purchases. The main focus is now on the mechanisms for forming corporate reserves.

Expert Commentary: Schiff's forecast is a classic bearish scenario based on technical analysis and a fundamental assessment of the risks of the largest BTC holder. However, ignoring the macroeconomic context and the growing interest of institutions in digital assets would be a mistake. The market will likely consolidate near key levels before determining a direction. As long as BTC holds above $60,000, it is premature to talk about the realization of such a catastrophic scenario.