- Schiff says Bitcoin-holding firms may fail and liquidate assets, arguing MSTR is a leveraged BTC play unfit for major indexes.
- He claims Bitcoin’s rebound fuels false hope, noting many holders sit below entry prices compared to gold’s steadier value.
- Calling Bitcoin a “fraud,” Schiff overlooks its decentralized design, which lacks any central actor capable of coordinated deception.
Economist Peter Schiff intensified his criticism of Bitcoin after the latest market rebound, arguing on X that the November uptick encouraged misplaced optimism. He said many Bitcoin treasury companies, including MicroStrategy, could face collapse and may be forced to sell their holdings as pressures increase. His comments followed new warnings from JPMorgan about potential MSTR index exclusion and related outflows.
Claims on Corporate Bitcoin Treasuries
Schiff said several firms built business models around holding Bitcoin. He argued that these companies may fail and then liquidate the Bitcoin they purchased. He mentioned MicroStrategy by name and said it may be the last to collapse.
According to him, JPMorgan’s warning that MSTR could be removed from major global equity indices reflects deeper structural risk. He said MSTR should not have been included, calling it a leveraged Bitcoin position rather than an operating business.
He added that passive index funds should not be required to buy shares of a company tied to a single asset. Schiff said critics attacked him personally instead of addressing his arguments. He said he warns to prevent losses, while others aim to benefit from what he described as misinformed investors.
Market Behavior and Bitcoin Price Rebound
Schiff referenced Bitcoin’s brief rebound and said the move created what he called “false hope.” He stated that bear markets produce small recoveries that convince holders the decline has ended. He said Bitcoin has not maintained value like gold. He noted that many buyers remain below their entry prices when compared with gold’s steadier performance.
However, this view focused on price behavior rather than network data. Schiff did not address adoption, on-chain activity, or distribution trends. His comments centered on value retention and the digital gold comparison.
Fraud Allegations and Bitcoin’s Structure
Schiff later referred to Bitcoin as a “fraud.” Fraud allegations require deliberate deception by a central actor. Bitcoin does not have a CEO or an entity controlling its supply. Its network decisions depend on distributed participants operating open code. Observers noted that fraud would require a coordinated majority takeover. No such event has occurred, and the system continues to operate as designed.
