Peter Schiff Predicts MicroStrategy Collapse – What Could Happen to Bitcoin?

Economist and well-known gold proponent Peter Schiff has suggested that MicroStrategy (MSTR) shares could suffer a significant decline.

The software company, which was co-founded by Michael Saylor, holds a significant position in the Bitcoin ecosystem , making this prediction notable for the cryptocurrency.

In a recent Platform X post, Schiff predicted that MSTR stock could eventually crash, citing its inflated valuation within the Morgan Stanley Capital International (MSCI) World Index. Schiff believes this crash will lead to a “real bloodbath“.

If the MSTR does indeed suffer such a crash, the implications could be serious for Bitcoin, as this is likely to become a ‘black swan‘ type event for the cryptocurrency. This is largely due to MicroStrategy’s significant holdings in Bitcoin, which currently make it the fifth largest holder of BTC with 252,220 tokens, ranking just behind Satoshi Nakamoto, Binance, BlackRock and Grayscale.

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As a result, Schiff’s prediction raises concerns that MSTR’s stock collapse could force the company to liquidate its Bitcoin holdings, putting significant selling pressure on the market. As MicroStrategy holds over 1% of the total Bitcoin supply, any large-scale sell-off could negatively impact the cryptocurrency’s price.

Alexander Stefanov