Longtime Bitcoin critic Peter Schiff believes many BTC investors are underestimating the implications of Strategy’s recent decision to sell part of its Bitcoin holdings, arguing that the move could reshape market sentiment toward the cryptocurrency.
Speaking on his YouTube podcast on July 9, Schiff discussed a range of topics, from geopolitical tensions to cryptocurrency markets, but devoted particular attention to Michael Saylor’s Strategy and its recent Bitcoin sale.
Schiff Says Strategy Was Bitcoin’s Biggest Support
According to Schiff, Strategy’s aggressive Bitcoin accumulation over the years played a critical role in supporting prices and strengthening institutional confidence in the asset.
He argued that many Bitcoin supporters fail to recognize how influential the company has become.
“Bitcoiners are delusional right now, or in denial about what’s happening with Strategy.”
Schiff maintained that Strategy’s consistent buying created a reliable source of demand that helped establish a price floor while also encouraging broader acceptance of Bitcoin within traditional finance.
The Sale Could Shift Market Psychology
Schiff believes the bigger issue is not the financial loss Strategy incurred but the message the sale sends to investors.
The company recently sold 3,588 BTC for approximately $216 million after acquiring those coins at significantly higher prices, resulting in a substantial realized loss. In Schiff’s view, the fact that Strategy has shifted from buying to selling is what could have the greatest impact on market psychology.
He suggested the firm may continue reducing its Bitcoin exposure to strengthen its cash position and support future dividend obligations.
Schiff also pointed to the performance of Strategy’s preferred shares, which have struggled despite an increase in dividend yield, arguing that this reflects declining investor confidence.
Analysts See the Move Differently
Not everyone shares Schiff’s bearish outlook.
Zach Pandl, Head of Research at Grayscale, recently argued that the transaction could actually strengthen confidence in Strategy’s financial position rather than undermine Bitcoin’s long-term prospects. He noted that the company still holds roughly $53 billion worth of Bitcoin against about $7 billion in debt, while its cash reserves have grown to approximately $2.55 billion, enough to cover around 17 months of dividend payments.
HashKey Group Senior Researcher Tim Sun echoed a similar view, suggesting that a reduced pace of purchases by Strategy could ultimately allow Bitcoin to establish a healthier and more sustainable price floor driven by organic market demand instead of leverage fueled buying.
Meanwhile, Bitwise Chief Investment Officer Matt Hougan believes Strategy’s influence as Bitcoin’s primary corporate buyer may gradually diminish, with major financial institutions such as Morgan Stanley and Wells Fargo potentially becoming the next significant sources of institutional demand.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
