Peter Schiff Warns Bitcoin Could Drop If Tech Stocks Reverse

Economist Peter Schiff has raised concerns about Bitcoin’s recent performance and its potential vulnerability to a broader market downturn. He noted that Bitcoin had gained nearly 1% on the week, trading around $84,500 during his latest show, but warned that its resilience could make a future reversal more severe. Schiff highlighted Strategy’s financing challenges, stating that the company can no longer sell more STRC shares to fund additional Bitcoin purchases.

Strategy’s latest financial figures show it holds 848,000 BTC, representing over 4% of the total supply, alongside $4.8 billion in USD reserves and $833 million in cash. The company’s STRC position has a notional value of $8.93 billion, with a 12% variable dividend and a 12.07% effective yield. Despite Schiff’s warnings, Strategy has continued acquiring Bitcoin, recently purchasing 334 BTC for about $28.7 million and repurchasing $176 million of STRC.

Schiff’s broader concern revolves around the broader market, where economic signals, such as softer inflation numbers and weaker employment figures, have not yet triggered a significant correction. He believes that markets are underestimating the risks, particularly if tech stocks experience a pullback. “At some point, Bitcoin is going to roll over, especially if we get a pullback in the tech market, which we haven’t had yet,” he cautioned.

Bitcoin has since risen to around $86,000, marking a 4% weekly gain and an 8% increase over 30 days, though it remains 30% below its year-ago levels. Schiff’s warnings come amid mixed signals in the oil market, where prices stood at about $91 a barrel following a G7 announcement to release 100 million barrels from strategic reserves.