Key Takeaways
- Peter Schiff warned that Bitcoin is unlikely to find a durable bottom at $50,000.
- Schiff argued that Strategy’s valuation is vulnerable to further declines.
- Michael Saylor and Strategy have downplayed downside risks and continue to add to their Bitcoin holdings.
Bitcoin critic Peter Schiff on Wednesday issued a renewed warning about BTC, arguing that prices will fall well below $50,000 over the long term.
In the same outburst, Schiff also accused Michael Saylor of disregarding shareholder value as Strategy continues one of the largest corporate Bitcoin accumulation campaigns on record, despite prices falling steeply in recent weeks.
Bitcoin Price Outlook
In a reply on X, Schiff said Bitcoin would not establish a lasting bottom at $50,000, describing that level as merely a short-term reference point.
“No, that’s just a very short-term price target based on MSTR. Long-term Bitcoin will go much lower than $50,000,” Schiff wrote, responding to a user who asked whether prices would rebound after reaching that level.
In a separate post, Schiff added that Bitcoin would be trading well below $50,000 by the time Strategy’s executive chairman ultimately exits his holdings.
“Bitcoin will be much lower than $50,000 when that happens,” Schiff wrote in response to a user who said they planned to buy once Saylor sells his Bitcoin.
Peter Schiff Hits Out At Bitcoin, Saylor and Strategy
Schiff also targeted Strategy’s stock, arguing that its valuation remains exposed to further downside and is closely linked to Bitcoin’s performance.
“It’s hard to find a chart that looks worse than $MSTR,” Schiff wrote on X. “At a minimum, the stock should drop to about $80, which is half its current price.”
He added that such a decline in Strategy’s shares would likely coincide with another sharp drop in Bitcoin.
“It’s hard to imagine MSTR dropping that much without a significant decline in Bitcoin as well,” Schiff said. “I’d say a minimum target for BTC is about $50K.”
Schiff has repeatedly argued that Saylor’s Bitcoin-focused strategy prioritizes cryptocurrency exposure over the interests of equity investors.
Strategy Downplays Risk
Saylor and Strategy have consistently minimized perceived risk during periods of Bitcoin volatility.
After Bitcoin fell last month, Strategy stated on X that even if BTC declined to its average purchase price of roughly $74,000, the company’s holdings would still cover its outstanding convertible debt multiple times over.
In November, Strategy CEO Phong Le suggested the company could be forced to sell Bitcoin if its shares traded below the value of its underlying holdings.
Despite these caveats, Saylor has long maintained his “never sell” stance.
Speaking at Binance Blockchain Week, Saylor expanded on Le’s remarks, stating that Strategy would only consider selling Bitcoin if its net asset value (NAV) fell below 1.
As of Dec. 2, Strategy’s mNAV stood at 1.15, indicating that investors value the company at approximately 15% above the value of its Bitcoin reserves.
Saylor Continues Bitcoin Accumulation
Despite Bitcoin’s price decline and growing criticism, Saylor has continued to expand Strategy’s Bitcoin holdings.
On Monday, the company announced it had acquired approximately $980.3 million worth of Bitcoin between Dec. 8 and Dec. 14, marking its largest weekly purchase since July and the second consecutive week in which it added more than 10,000 bitcoins.
In a post on X, Saylor said Strategy purchased 10,645 bitcoins at an average price of approximately $92,098 per coin.
As of Dec. 17, Strategy held 671,268 Bitcoins acquired for a total cost of roughly $50.33 billion, according to the company.
Bitcoin Price Outlook
At the time of reporting, Bitcoin was trading around $86,839, down nearly 4% over the past seven days.
“Bitcoin’s failure to reclaim $91,500 has shifted the balance decisively back in favor of the bears,” he wrote.
He added: “With momentum weakening and wave structure indicating a lower trajectory, BTC appears vulnerable to another sharp decline before any meaningful recovery can begin.”
Until key resistance levels are reclaimed, Tahiri concluded, “the path of least resistance remains down.”
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
