Bitcoin’s recent failing to perform has cast a shadow over the whole cryptocurrency market, and people who are against the asset class are once again speaking out.
Peter Schiff has been one of the most audible critics. He recently called cryptocurrencies and MicroStrategy unstable, implying that the market might crash.
Schiff recently wrote a series of posts in which he pointed out that Bitcoin has been trading in a straight line for over three months, even though 11 spot Bitcoin ETFs have been active. It is now 11% below its March high.
Schiff Questions Bitcoin Market Dynamics
Schiff asked about the way the market works and who has been selling BTC if ETF investors are always buying. He also made guesses about what might happen if these ETF buyers get impatient and start selling their shares.
Schiff said that hedge funds could be involved strategically, buying BTC or ETFs while shorting MicroStrategy (MSTR), a company led by CEO Michael Saylor that has substantial Bitcoin interests.
He seemed to be saying that if hedge funds closed their trades, they would have to sell their cryptocurrency stocks, which could cause the price of BTC to decline significantly. This could then put more downward pressure on MicroStrategy.
