Crypto's Prolonged Winter: Schiff's Grim Prediction Against Saylor's Steadfast Bitcoin Commitment
- Bitcoin bear Peter Schiff warns of prolonged "crypto ice age," dismissing Michael Saylor’s Bitcoin treasury strategy as "harebrained." - Bitcoin and Ethereum prices plummet below $109,000 and $4,000, erasing $1B in liquidations as the Crypto Fear & Greed Index hits 28. - MicroStrategy’s stock drops 45% from its peak, with Schiff predicting a "brutal bear market" for Bitcoin treasury companies. - CryptoQuant warns of 50% downside risk for companies relying on PIPE deals, as macroeconomic factors like Fed
Bitcoin skeptic Peter Schiff has ramped up his cautions about an extended slump in the crypto sector, describing it as a possible "crypto ice age" and criticizing Michael Saylor’s
Schiff, who has long been an outspoken opponent of Bitcoin, claims that the current downturn is not just another "crypto winter" but a much harsher and lasting "ice age." "We’re not heading into a typical crypto winter, since that would mean a recovery is near," he posted on X. His bleak outlook matches the broader market’s direction, with Bitcoin losing 4% and Ethereum dropping 8% in the past 24 hours. Other cryptocurrencies like
This negative sentiment also affects companies that have adopted Bitcoin as part of their treasury strategy, especially Saylor’s MicroStrategy (MSTR). Schiff criticized this approach, pointing out that MSTR’s stock has dropped 45% since its November 2024 high, and questioned whether such companies—including MSTR—can weather the downturn. "Bitcoin Treasury companies are in for a punishing bear market," he warned. Despite these setbacks, Saylor has continued to buy Bitcoin, acquiring 850
Blockchain analytics company CryptoQuant has echoed these warnings, noting that firms depending on private investment in public equity (PIPE) deals could see their stock prices cut in half if investors rush to sell after lock-up periods end. The firm referenced cases like KindlyMD, which plunged 97% after PIPE shares became tradable, and pointed to similar dangers for Strive (ASST) and Cantor Equity Partners. With PIPE deals raising over $2.5 billion, a strong Bitcoin rebound may be the only thing preventing further declines in these stocks title1 [ 1 ].
Saylor’s support for the treasury strategy stands in stark contrast to Schiff’s criticism. On a recent earnings call, Saylor voiced confidence in MSTR’s strength, highlighting a "robust" perpetual preferred stock plan and an 81% return so far this year. He described Bitcoin treasuries as a foundation for a "financial transformation," utilizing "digital capital" and "digital intelligence." Still, Schiff rejected this optimism, arguing the strategy cannot hold up in a drawn-out bear market title2 [ 2 ].
The future direction of the market remains unclear. While Saylor’s continued Bitcoin acquisitions show his long-term conviction, Schiff’s warnings point to underlying weaknesses in the industry. With macroeconomic pressures such as the U.S. Federal Reserve’s tighter policies and disappointing GDP growth adding to the volatility, the coming months will be a crucial test for Bitcoin treasury strategies and the wider crypto market title3 [ 3 ].
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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