Against the background of an uninspiring, to put it mildly, price behavior of Bitcoin and, consequently, of the entire crypto market, the voices of skeptics and critics of the new asset class have begun to break out publicly again.
Against the backdrop of an uninspiring, to put it mildly, price behavior of Bitcoin and, consequently, of the entire crypto market, the voices of skeptics and critics of the new asset class have begun to erupt publicly again.
Tomiwabold OlajideThus, in a recent series of publications, Peter Schiff has questioned the stability of cryptocurrencies and MicroStrategy, raising concerns about the possibility of a crash. Despite buying activity from 11 spot Bitcoin ETFs, Schiff noted that BTC has been trading sideways for over three months and is currently 11% below its March high.
He questioned market dynamics and asked who has been selling Bitcoin if ETF investors have been consistent buyers, and what could happen if these ETF buyers lose patience and start selling their holdings.
Hedge funds are selling as they buy MSTR. They would be undoing both sides of the differential.
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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 with large investments in BTC under the leadership of CEO Michael Saylor. .
Gamza KhanzadaevSchiff’s analysis implies a possible domino effect that could severely affect both Bitcoin and MicroStrategy. If hedge funds decide to unwind their operations, they would have to sell their cryptocurrency holdings. This influx of sales could cause a sharp drop in the price of Bitcoin. Such a decline, in turn, would put additional bearish pressure on MicroStrategy.
