Strategy (NASDAQ:MSTR) stock rose for four consecutive days, reaching its highest level since June 24. This rebound happened as Bitcoin (CRYPTO: BTC) jumped from the year-to-date low of $57,828 to nearly $63,000, and after Michael Saylor highlighted the strategy to ensure financial stability.
Peter Schiff Calls Michael Saylor a Fraud
Peter Schiff, the popular goldbug, continues to blast Michael Saylor and Strategy. In a recent interview with Paul Buitink, the head of Holland Gold, he maintained that Saylor was a fraud and that Strategy was in a death spiral.
Schiff has always been critical of Bitcoin and Strategy. He believes that Bitcoin has no value and that the claims made by its proponents, such as its rarity and its role as a store of value are not valid.
Most notably, he believes that Strategy will ultimately find itself in financial problem. His prediction has come to pass after the company announced that it would start to sell some of its Bitcoin to fund its dividends to its preferred shares. The urgency to raise cash increased after the company’s preferred stocks plunged from their par levels.
Schiff believes that Bitcoin price will plunge once Saylor starts to sell coins worth over $1.5 billion. This selling will come at a time when American investors have continued to redeem their Bitcoin ETFs.
Spot Bitcoin ETF outflows have jumped to over $5 billion this year, with the cumulative inflows falling. Bitcoin futures open interest has also remained under pressure, moving from $95 billion last year to $46 billion today.
MSTR Stock Remains Below Key Averages
While Strategy shares have rebounded in the past few days, it is too early to call a new bull run. For one, the stock has retested the important support level of $104, its lowest level in February this year. That is a sign that it has formed a break-and-retest pattern.
Strategy stock also remains solidly below the 50-day and 100-day moving averages, suggesting that the bearish outlook is still intact. It also sits below the Supertrend indicator. As such, there is a risk that the stock will remain under pressure in the coming weeks. If this happens, the stock may drop and retest the year-to-date low of $82.26.
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