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Bitcoin (BTC) will collapse when Saylor stops buying, predicts Peter Schiff
The Golden Bug Peter Schiff recently he took aim to Bitcoin promoter Michael Saylor for his recent announcement of a $500 million bond sale that is intended to boost Bitcoin.
Schiff predicted that the price of the flagship cryptocurrency could collapse if Saylor stopped supporting it with massive leveraged purchases. “Not yet. I wonder how much lower Bitcoin would be now if it weren’t for all these leveraged buys,” the cryptocurrency critic said.
The 61-year-old financial commentator also suggested that creditors could “finally force” Saylor to liquidate his Bitcoin holdings.
After initially adopting the flagship cryptocurrency as a treasury reserve asset in August 2020, MicroStrategy announced its first convertible bond offering in December 2020 to specifically purchase more Bitcoin. The move spooked some analysts, with Citi rushing to downgrade MicroStrategy’s shares.
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THE last offer it should also boost the Nasdaq-listed company’s Bitcoin fortune.
It is worth noting that MicroStrategy already owns as many as 214,000 coins, the base cost of which amounts to $7.5 billion.
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While Schiff is known for his doom-laden Bitcoin purchases, banking giant JPMorgan also expressed concern over MicroStrategy’s leveraged Bitcoin purchases earlier this year. JPMorgan’s Nikolaos Panigirtzoglou believes there is a risk of “severe deleveraging.” Such a scenario could occur if cryptocurrency prices were to drop substantially lower. Schiff’s criticism is therefore obviously not unfounded.
Earlier this week, Schiff also warned Bitcoin buyers that ETFs would not bail them out as their buyers are not holders of “diamond hands.”