A well-known critic of digital assets and a staunch advocate for gold has once again launched a sharp attack on the leading cryptocurrency. In his latest analysis, he predicts a catastrophic decline for Bitcoin — a full 70% drop from current levels, down to the $20,000 mark. His criticism is aimed not only at the asset itself but also at the strategy of the largest public BTC holder — the company Strategy (formerly MicroStrategy) and its co-founder Michael Saylor.

In the latest episode of his podcast, the financier thoroughly dissected Strategy's recent financial maneuvers. He concluded that the company has painted itself into a corner. In his view, investors currently holding Bitcoin risk facing colossal losses in the very near future.

Criticism of Strategy's Stock Sales and the Saylor Paradox

As a reminder, under the Strategy brand, Michael Saylor has accumulated over 847,000 BTC, making the company the largest public institutional investor in cryptocurrency. However, key events in recent weeks raise serious questions:

  • A three-week pause in Bitcoin purchases.
  • Profit-taking on 3,588 BTC.
  • Raising $450 million through an issuance of common stock.

As a result of the issuance, the company's 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. In his opinion, this represents an illogical dilution of shareholder capital. Management preferred fiat money over its own promising reserves, which is a sign of a deep strategic crisis.

The critic's key thesis: Saylor is trapped. He fully understands that any large-scale exit from Bitcoin would instantly crash its price. The market, in turn, has already recognized this vulnerability.

"Saylor knows perfectly well: if he starts selling Bitcoin en masse, the price will collapse. The problem is that the market would have already fallen anyway, because everyone understands the trap he's in. Even if he doesn't sell a single Bitcoin, the price could fall without regard for him. But he is so unwilling to sell the cryptocurrency that he is ready to sell his own shares at a huge discount," the financier emphasized on his podcast.

Technical Analysis and Support Zone: Where Will BTC Go?

The analyst identified resistance on the chart around $65,000 and support approximately at the $58,000 level. He warns: if the price drops below this mark, Bitcoin could fall under $50,000. In his estimation, the true support zone lies in the $30,000–$20,000 range — levels the leading cryptocurrency hasn't seen in many years.

Notably, in his analysis, he 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 last five years.

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

At the time of publication, Bitcoin is trading just below $65,000, having gained nearly 5% over the week. However, the discussion sparked by this well-known skeptic extends far beyond 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. Large investors have begun to analyze issuers' debt burdens, additional share issuances, and overall credit conditions much more deeply. Large-scale deals are no longer perceived by the audience as automatic confirmation of the sector's reliability.

Expert opinion: Peter Schiff's predictions are a classic bearish narrative that often ignores fundamental changes in market structure. However, his criticism of Strategy deserves attention. The problem of diluting shareholder capital to purchase a volatile asset is indeed a serious risk for corporate investors that is currently underestimated. If this model begins to fail, we could see not just a correction, but a paradigm shift in institutional demand for BTC.