Well-known cryptocurrency critic and gold advocate Peter Schiff has once again attacked Bitcoin and its largest corporate holder, Michael Saylor. In his latest public statement, the financier made a grim forecast: the BTC price could crash to $20,000, representing a drop of nearly 70% from current levels. Schiff not only predicts a collapse but also harshly criticizes the recent financial maneuvers of Strategy (formerly MicroStrategy).
A Trap for the Largest Holder
Under the Strategy brand, Michael Saylor has accumulated over 847,000 BTC, making the company the largest public investor in cryptocurrency. However, according to Schiff, this is not a strength but a trap. Key events in recent weeks only confirm his skepticism: the company stopped buying Bitcoin for three weeks, recorded a profit from selling 3,588 BTC, but simultaneously raised $450 million through an issuance of common stock.
As a result of the issuance, total reserve funds grew to $3 billion. However, as the analyst notes, the market value of Strategy's shares themselves turned out to be significantly lower than the valuation of the cryptocurrency portfolio on its balance sheet. Schiff called this decision an illogical dilution of shareholder capital, since management preferred fiat money over its own promising reserves.
In his view, Saylor has painted himself into a corner. Any large sale of Bitcoin would instantly crash the market, but holding the asset is becoming increasingly risky. The market has already recognized this dilemma, putting pressure on the price. Schiff emphasizes: Saylor fully understands that a mass exit from the asset would trigger a collapse, but he is so unwilling to sell the cryptocurrency that he is ready to sell his own shares at a huge discount.
Technical Analysis from a Skeptic
Schiff also presented his technical view on the Bitcoin chart. He identified resistance around $65,000 and support at approximately $58,000. According to his assessment, a break below $58,000 would open the door to a drop below $50,000. The final support zone, he says, lies in the $30,000–$20,000 range—levels Bitcoin has not seen for many years.
Notably, Schiff has partially revised his previous stance. He acknowledged that buying Bitcoin 15 years ago would have been a justified decision. However, he does not regret not investing in BTC over the past five years. At the time of publication, Bitcoin is trading just below $65,000, having gained nearly 5% over the week.
Expert Commentary: Schiff's statements, though driven by his long-standing skepticism, raise an important question about the sustainability of the corporate Bitcoin accumulation model. Strategy's actions, balancing between stock issuance and holding a giant crypto portfolio, create a precedent that the market will closely study. Investors should monitor the actions of the largest holders: their exit or, conversely, holding strategies will determine medium-term dynamics.