Notable gold investor Peter Schiff has raised concerns that hedge funds are preparing to sell their Bitcoin holdings and initiate short positions on MicroStrategy, leading to a significant change in sentiment towards the popular cryptocurrency and the software company known for its large Bitcoin holdings. As indicated by Peter Schiff, MicroStrategy’s stock price has declined by 30% from its peak in March.
Peter Schiff, a well-known investor and economist, has recently warned about hedge funds that are getting ready to sell their Bitcoin holdings and increase their short positions on MicroStrategy (MSTR). The stock price of MicroStrategy has dropped by 30% from its highest point in March, as mentioned by Peter Schiff.
Anticipating high volatility, hedge funds have traditionally protected themselves from Bitcoin’s price fluctuations by shorting MicroStrategy’s shares while holding Bitcoin. However, this strategy is now changing. Schiff claims that these hedge funds will solely focus on shorting MSTR and selling their Bitcoin holdings. This shift in strategy may further accelerate the decline in MicroStrategy’s stock price if these funds indeed sell their Bitcoin, adding more selling pressure to the cryptocurrency market.
The hedge funds view this strategic move as an opportunity to capitalize on their short positions in MSTR shares and benefit from the anticipated drops. MicroStrategy’s CEO, Michael Saylor, has recently gained attention due to the company’s significant Bitcoin holdings.
Despite this, hedge funds looking to profit from perceived vulnerabilities in the cryptocurrency market have targeted MicroStrategy’s shares due to its strong correlation with Bitcoin’s price fluctuations.
In today’s highlighted crypto news, Bitcoin has experienced a massive sell-off, resulting in miners liquidating BTC worth $2 billion.
