Peter Schiff Predicts Bitcoin Could Fall to $20,000, Criticizes Strategy’s Stock Sale

Economist and longtime Bitcoin critic Peter Schiff has renewed his bearish outlook on Bitcoin (BTC), arguing that Strategy (formerly MicroStrategy) is trapped by its massive cryptocurrency holdings and warning that investors who continue holding BTC could face significant losses.

During his latest podcast, Schiff criticized Strategy’s decision to raise $450 million through a common stock offering instead of using part of its Bitcoin reserves. The company, led by Executive Chairman Michael Saylor, owns more than 847,000 BTC, making it the largest publicly traded corporate holder of Bitcoin.

Strategy has paused Bitcoin purchases for three consecutive weeks and has not made additional sales after disposing of 3,588 BTC last week. The recent equity offering increased the company’s cash reserves to approximately $3 billion, despite its shares trading at a notable discount to the value of its Bitcoin holdings.

Schiff argued that issuing new shares unnecessarily dilutes existing shareholders. He also claimed Saylor is reluctant to sell Bitcoin because a large-scale liquidation could trigger a sharp decline in BTC prices. According to Schiff, the market already recognizes this dilemma, making the situation difficult for the company regardless of whether it sells.

“Saylor knows if he starts really selling Bitcoin, the price is gonna crash,” Schiff said, adding that he believes the market will eventually decline even without significant sales.

The economist also maintained his bearish Bitcoin price forecast. He identified resistance around $65,000 and support near $58,000, warning that a break below key levels could push BTC under $50,000 before eventually falling into the $30,000 to $20,000 range.

Despite his criticism, Schiff acknowledged that buying Bitcoin 15 years ago would have been a smart investment, though he said he has no regrets about avoiding the asset over the past several years.

At the time of writing, Bitcoin trades just below $65,000 after gaining nearly 5% over the past week. Meanwhile, analysts continue debating the long-term sustainability of Strategy’s Bitcoin accumulation strategy, with investors increasingly focused on the company’s cash reserves, stock issuances, and financing model rather than simply celebrating additional BTC purchases.