American stockbroker and crypto critic Peter Schiff has predicted another bearish turn for Bitcoin (BTC) and its largest corporate holder, MicroStrategy. He also took aim at the leverage strategy employed by the business intelligence company to purchase more Bitcoin in recent months.
In a post on X (formerly Twitter), Schiff claimed the Trump administration would not adopt Bitcoin as a reserve asset. He suggested this confirmation would drive Bitcoin holders to sell, which could negatively affect MicroStrategy.
Michael Saylor’s Bitcoin Strategy Under Fire
Schiff believes MicroStrategy and its CEO, Michael Saylor, would accelerate leveraged Bitcoin purchases to prevent a crash. However, he predicts these moves will only delay Bitcoin’s collapse, eventually causing MicroStrategy’s shares to plummet. Notably, MicroStrategy’s stock price fell 9.94% on January 7, closing at $341.42.
When asked about his stance, Schiff clarified that he doesn’t hate Bitcoin but opposes the ‘speculative mania’ surrounding it. He argues that this frenzy of speculation has driven a significant misallocation of capital, eroding financial stability and undermining sound monetary principles.
Bitcoin Drops Below $100K
Bitcoin’s price fell below $100,000, trading at $95,476.25—a 6.21% drop in the past 24 hours, according to CoinMarketCap. The $100,000 mark remains a critical resistance level for the cryptocurrency.
Read also: Bitcoin $120K Predictions Surge with Trump’s Inauguration
The Relative Strength Index (RSI) reads a value of 46.88 which means that the bears have taken over for the Bitcoin price action on the daily time frame. Also, the gradient of the line indicates that lower prices are very much possible in the near future.
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