Peter Schiff attacked Bitcoin and Michael Saylor on July 15, predicting a slide to $20,000 (nearly 70% below current prices) and questioning MicroStrategy’s decision to sell stock rather than BTC.
The economist argues that Saylor is trapped and that holders who refuse to sell today will regret it soon.
Schiff Targets Strategy’s $450 Million Stock Sale
Strategy (formerly MicroStrategy) is the corporate vehicle through which Michael Saylor accumulated more than 847,000 Bitcoin, making it the largest public holder of the asset.
Schiff dedicated part of his latest podcast episode to dissecting the company’s latest financial moves. His conclusions were predictably harsh.
The firm has gone three consecutive weeks without buying Bitcoin. It has not sold any either since disposing of 3,588 BTC last week, opting instead to raise $450 million through a common stock sale.
That decision pushed cash reserves to $3 billion while the stock traded at a steep discount to its Bitcoin holdings. Schiff called the operation a needless dilution of shareholders. The company chose paper over its own reserves.
His reasoning centers on a trap. According to the economist, Saylor avoids selling BTC because any meaningful liquidation would sink the price. The market, he claims, already understands that perfectly well.
“Saylor knows if he starts really selling Bitcoin, the price is gonna crash. Now, the problem is it’s gonna crash anyway because the market realizes the bind that he’s in, and even if he doesn’t sell, the market is gonna crash out from under him. But he is so nervous about selling Bitcoin that he’s willing to sell his own stock at a massive discount,” Schiff noted.
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Why Does Schiff Expect Bitcoin to Reach $20,000
Schiff went further with his forecast. He identified resistance near $65,000 and support around $58,000, warning that a break below could drag Bitcoin under $50,000. His floor sits between $30,000 and $20,000, a level not seen for years.
Curiously, the critic admitted some regret. He said buying Bitcoin 15 years ago would have made perfect sense, though he feels absolutely no remorse about skipping the last five years of the rally.
“I don’t regret not buying it three, four, five years ago… But yeah, 15 years ago, sure, I should have bought it,” the economist confessed.
The timing of the criticism, however, looks awkward. Bitcoin trades just under $65,000 at the time of writing, up nearly 5% in the last week, according to BeInCrypto data.