Schiff Warns: Sell BTC and MSTR as Gold Surpasses $4,400

Peter Schiff is warning investors to sell their Bitcoin (BTC) and Strategy (formerly MicroStrategy, MSTR) stock as gold prices continue to rise. Gold has surpassed $4,400 an ounce, with a gain of 6.78% in the past month and 29.6% over the past year.

Schiff sees this as a sign that money is rotating back towards hard assets, and notes that Strategy's recent sale of 1,690 BTC for $108.6 million was likely due to lenders losing confidence in Bitcoin as collateral. He argues that investors should sell MSTR and BTC now, citing the company's pattern of selling Bitcoin to buy dollars.

Strategy has been using the proceeds from these sales to raise capital and increase its dollar reserve. The company's dollar reserve hit $4.65 billion as of August 9, while its holdings slipped to 840,447 BTC. Schiff's view is that this divergence between gold and Bitcoin is structural rather than temporary.