Peter Schiff "Bitcoin (BTC) Investors in Denial"...Mentions Strategy's Additional Sales

▲ Michael Saylor, Bitcoin (BTC), Strategy/ChatGPT generated image

As Strategy sold off some of its Bitcoin (BTC) at a loss, Peter Schiff, a prominent Bitcoin critic, stated that "Bitcoin investors are in denial" and even suggested the possibility of further sales.

According to crypto media outlet Cryptopotato on July 9 (local time), economist Peter Schiff argued on his podcast that Strategy's buying spree was the key demand supporting Bitcoin's price. Schiff said, "Bitcoin investors are either delusional or in denial about what's happening at Strategy," adding, "Strategy created a floor for Bitcoin's price and legitimized Bitcoin in the financial sector."

Strategy recently sold 3,588 BTC for approximately $216 million. Schiff pointed out that the company sold Bitcoin, which it had purchased at around $75,000, for an average of approximately $60,000, incurring a loss of about $15,000 per BTC. He emphasized, "It's not just a matter of stopping purchases or selling; it's a matter of psychology."

Schiff argued that Michael Saylor might further reduce Strategy's Bitcoin holdings to secure cash and pay dividends, potentially leading to a complete sell-off. He also interpreted the fact that preferred shares traded at around $86, despite the dividend rate being raised to 12%, as a sign of weakening investor confidence. Schiff declared, "The game is over," adding, "The market is showing that there is no more trust."

However, counterarguments emerged. Zach Pandl, Head of Research at Grayscale, analyzed that Strategy holds $53 billion worth of Bitcoin compared to $7 billion in debt and has also increased its cash reserves to approximately $2.55 billion. The current cash reserves are sufficient to cover 17 months of dividends, suggesting that this sale could actually restore confidence in the financing structure.

Tim Sun, Senior Researcher at HashKey Group, suggested that a slowdown in Strategy's buying pace could help form a Bitcoin price floor based on natural market demand rather than demand centered on financial funding. Matt Hougan, Chief Investment Officer at Bitwise, also predicted that in the next cycle, Strategy's influence would diminish, and institutions like Morgan Stanley and Wells Fargo could emerge as major sources of Bitcoin demand.

[Article Key Summary]

-Strategy recently sold 3,588 BTC for approximately $216 million, and Peter Schiff claimed a loss of about $15,000 per BTC.

-Schiff argued that Strategy's sale could shake Bitcoin market sentiment and lead to further sell-offs.

-Grayscale, HashKey Group, and Bitwise offered different assessments, citing Strategy's financial structure and the potential for increased institutional demand.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*