MicroStrategy (MSTR) stock has faced heavy pressure amid a significant pullback in Bitcoin recently. Notably, the stock closed at around 10% down on Tuesday, while continuing its downturn momentum in the pre-market session today. Amid this, renowned Bitcoin critic and economist Peter Schiff has warned over a potential MSTR price crash in the coming days, as the BTC selloff intensifies . Here’s Why Peter Schiff Predicts MicroStrategy (MSTR) Stock Crash Renowned economist and Bitcoin critic Peter Schiff has issued a warning of an impending MicroStrategy (MSTR) stock crash. This prediction comes as MSTR faces significant pressure, with its stock price plummeting 10% on Tuesday and continuing its downward trend in today’s pre-market session. Meanwhile, the economist attributes the potential crash to the intensifying Bitcoin selloff. Besides, he hinted that the US government is not going to buy Bitcoin, as Donald Trump has promised during his election campaigns. It’s worth noting that BTC has witnessed a massive rally after Trump’s victory with soaring optimism over the US adopting a Bitcoin Strategic Reserve. Schiff’s Warning Sparks Concern Peter Schiff said that once it becomes clear the US government won’t be buying Bitcoin, investors who hoped to profit from front-running will sell. This, in turn, will force MicroStrategy’s Michael Saylor to accelerate the company’s leveraged Bitcoin purchases to delay the impending crash, he noted. Notably, MicroStrategy’s stock has been closely tied to Bitcoin’s performance, with the company holding over 1% of the flagship crypto’s total supply. Having said that, a potential crash could have far-reaching implications for both MicroStrategy stock and the broader crypto market. Notably, Schiff also said that a leveraged Bitcoin purchase move would result in the MSTR stock crash first than Bitcoin. MicroStrategy & Bitcoin Relation Meanwhile, Schiff’s warnings come as MicroStrategy’s stock has experienced a significant surge, rising over 1,000% since the company adopted its Bitcoin strategy in August 2020. It’s worth noting that the stock of the firm also moves in tandem with Bitcoin’s performance. For context, the recent dip in MSTR price comes as Bitcoin witnessed a steep decline amid a broader crypto market crash . Here we have discussed why Bitcoin price dipped recently after hitting the $102K level. However, critics like Schiff believe that the company’s rapid accumulation of Bitcoin may lead to a collapse, worsening the market downturn. It’s also worth noting that Peter Schiff has also previously slammed Bitcoin and companies that adopt a BTC buying strategy. MicroStrategy’s Bitcoin Buying Strategy Recently, MicroStrategy has acquired 1,070 BTC for $101 million, which has gained investors’ attention. On the other hand, Michael Saylor recently revealed that the company has accumulated 258,320 BTC through 2024, worth around $22.07 billion. Besides, the company’s founder also revealed that it plans to raise $2 billion in capital through offering its perpetual preferred stock in Q1 2025. The firm also confirmed that this move is aimed at its Bitcoin buying strategy and to strengthen its balance sheet. MSTR Stock Price Slips 10% MSTR stock price closed at $341.425 on Tuesday, down 9.94% from its prior session, while witnessing a slump of about 1% in the pre-market session today. Notably, the stock has touched a 52-week high of $543 , indicating the growing investors’ confidence towards the asset with the firm continuing its Bitcoin buying strategy. Besides, a recent report indicates that the MSTR price may hit $500 once again. The post MicroStrategy (MSTR) Stock To Crash, Peter Schiff Says appeared first on CoinGape .
