U.Today – Against the background of uninspiring price behavior, to put it mildly, and, as a consequence, the entire cryptocurrency market, the voices of skeptics and critics of the new asset class have begun to erupt publicly again . .
Therefore, in a recent series of posts, Peter Schiff 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.
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. .
Schiff'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.
This article was originally published on U.Today.
