U.Today – Against the backdrop of ‘s – to put it mildly – less than encouraging price behavior, and as a consequence that of the entire crypto market, the voices of skeptics and critics of the new asset class have begun to erupt publicly again.
Thus, in a recent series of posts, Peter Schiff has questioned the stability of cryptocurrency and MicroStrategy, raising concerns about the potential for a crash. Despite the buying activity of 11 spot Bitcoin ETFs, Schiff pointed out that BTC has been trading sideways for over three months and is currently 11% below its March high.
He questioned the market dynamics, asking who has been selling Bitcoin if ETF investors have been consistent buyers, and what might happen if these ETF buyers lose patience and start selling their holdings.
Schiff then speculates that hedge funds may play a pivotal role in this scenario, suggesting that these funds may be buying Bitcoin or ETFs as part of a strategy to short MicroStrategy (MSTR), a company heavily invested in BTC under the leadership of CEO Michael Saylor.
Schiff’s analysis implies a potential domino effect that could severely impact both Bitcoin and MicroStrategy. If the hedge funds decide to unwind their trades, they would have to sell their cryptocurrency holdings. This influx of selling could lead to a sharp decline in the price of Bitcoin. Such a crash would, in turn, put additional downward pressure on MicroStrategy.
