Top Economist Warns of a Major Risk for Michael Saylor’s Bitcoin Strategy

Peter Schiff, a prominent critic of Bitcoin, has identified large-scale withdrawals from Bitcoin exchange-traded funds (ETFs) as the biggest threat to Michael Saylor’s strategy.

Schiff believes that these redemptions would significantly impact Bitcoin’s price, driving it lower, which in turn would cause even greater losses for companies like MicroStrategy (MSTR), which holds substantial Bitcoin reserves.

Schiff argues that many of the investors buying into Bitcoin ETFs are newcomers to the crypto space, viewing their purchases more as speculative trades than long-term investments.

He points out that these traders may quickly pull out if Bitcoin’s price falls, leading to a sharp drop in value.

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Bitcoin Correction Nearing Its End? Analyst Predicts Next Move

This, he suggests, is why Saylor’s decision to heavily leverage MSTR in Bitcoin investments is a risky move. Recently, Bitcoin’s price tumbled to a multi-month low of $86,141, and MicroStrategy’s stock saw a steep decline, falling more than 11%.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.