Peter Schiff attacked Bitcoin and Michael Saylor on July 15, predicting a price drop to $20,000 (nearly 70% below current prices) and questioning MicroStrategy’s decision to sell shares instead of Bitcoin.
The economist says Saylor is cornered and that shareholders who refuse to sell today will soon regret it.
Schiff aims to sell Strategy shares worth $450 million
Strategy (formerly known as MicroStrategy) is the corporate vehicle through which Michael Saylor has amassed over 847,000 Bitcoin, making him the largest public holder of the asset.
Schiff devoted a portion of his latest podcast episode to analyzing the company’s latest financial moves. His conclusions were predictably harsh.
The company has gone three straight weeks without purchasing Bitcoin. None were sold either Since 3,588 Bitcoins were dumped last weekIt instead chose to raise $450 million through the sale of common stock.
This decision pushed cash reserves to $3 billion while the stock traded at a significant discount to its Bitcoin holdings. Schiff described the process as unnecessary dilution for shareholders. The company chose paper over its own reserves.
His thinking revolves around the trap. According to the economistSaylor avoids selling Bitcoin because any meaningful liquidation would send the price down. He claims the market already understands this well.
“Saylor knows that if he really starts selling Bitcoin, the price will collapse. The problem now is that it will collapse anyway because the market realizes the predicament he’s in, and even if he doesn’t sell, the market will collapse beneath him. But he’s so nervous about selling Bitcoin that he’s willing to sell his own shares at a deep discount,” Schiff said. male.
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Why does Schiff expect Bitcoin to reach $20,000?
Schiff went further in his predictions. He identified resistance near $65,000 and support around $58,000, warning that a break below could drag Bitcoin below $50,000. His floor ranges from $30,000 to $20,000This is a level we have not seen in years.
Oddly enough, the critic admitted some regret. He said buying Bitcoin 15 years ago would have made perfect sense, although he has no regrets at all about weathering the last five years of the rally.
The economist admitted: “I don’t regret not buying it three, four or five years ago…but yes, 15 years ago, for sure, I should have bought it.”
But the timing of the criticism seems strange. Bitcoin is trading at less than $65,000 At the time of writing, it has risen nearly 5% in the past week, According to To BeInCrypto data.
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But the broader debate extends beyond Schiff’s expectations. Analysts are reevaluating the company’s Bitcoin accumulation model, and the strategy is at the heart of this reassessment.
Investors are now examining cash reserves, equity issues, and financing terms before assuming that future purchases will remain sustainable. Headline-grabbing purchases no longer carry the same automatic credibility in the market they once did.
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