Economist Peter Schiff said on Tuesday that Strategy Inc. (NASDAQ:MSTR) would need to sell a “lot more” of its Bitcoin (CRYPTO: BTC) holdings to preserve dollar reserves amid the ongoing slump.
Schiff Expects BTC To Retest $20,000
In an X post, Schiff predicted that Bitcoin’s $58,000 support level will break, leading to a decline below $50,000 and potentially testing the lows around $20,000
In a jab at Strategy, the Bitcoin critic suggested that the firm would have to sell off a large share of its BTC reserves to maintain adequate cash levels if such a collapse occurred.
Bitcoin Monetization Program Adding Bearish Pressure?
Earlier this week, Schiff said that Strategy’s potential shift from being a major BTC buyer to selling Bitcoin to fund reserves, dividends, interest payments, and share buybacks would remove a significant pillar of market support.
His reference was to Strategy’s new Bitcoin monetization program, authorizing up to $1.25 billion in potential sales.
Strategy rebuilt its USD reserve to $2.55 billion after issuing more than 12 million shares of common stock last week while buying zero Bitcoin.
Bitcoin Speculation Heats Up
Leading investment bank TD Cowen has revised its Bitcoin outlook downward, now expecting the cryptocurrency to reach approximately $100,000 by the end of 2026 and $135,000 by end of 2027, compared to prior targets of $140,000 and $190,000.
Meanwhile, odds that Bitcoin will slide below $50,000 this year have risen to 62% on Polymarket, a cryptocurrency-backed prediction platform. The chances of a move below $40,000 surged to 30% as of this writing.
The Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, typically the 12-period and the 26-period, flashed a “Sell” signal for BTC, according to TradingView.
The Commodity Channel Index, which measures an asset’s price movement relative to its 20-day moving average, flagged oversold conditions that signal a potential “Buy.”
Price Action: At the time of writing, BTC was exchanging hands at $58,679.07, down 1.27% over the last 24 hours, according to data from Benzinga Pro.
Strategy shares were down 0.12% in Wednesday’s pre-market trading after closing 6.20% lower at $86.93 during Tuesday’s regular trading session.
Benzinga Edge Stock Rankings indicate that MSTR is underperforming, exhibiting weak price momentum across short-, medium-, and long-term horizons.
Photo courtesy: Shutterstock
Recent Comments