Bitcoin Skeptic Peter Schiff Predicts MicroStrategy Stock Crash, Calling It ‘Most Overvalued’ in Global Index

Peter Schiff, a prominent economist and staunch Bitcoin critic, has issued a stark warning about MicroStrategy Inc. (MSTR), a company renowned for its massive Bitcoin holdings. In a recent social media post, Schiff declared that MSTR is “the most overvalued stock in the MSCI World Index.” He went on to predict that when the stock eventually crashes, it will be a “real bloodbath.”

Schiff’s prediction comes against the backdrop of MicroStrategy’s surging stock price. The company’s shares have surged by an impressive 220.64% year-to-date. However, Schiff believes this growth is unsustainable and that a significant correction is inevitable.

The MSCI World Index, a widely followed gauge of global stock market performance, tracks approximately 1,500 large and mid-cap companies from 23 developed nations. MicroStrategy, which was added to the index earlier this year, currently carries a weighting of 0.039380%. While the MSCI World Index recorded a notable 24% gain in 2023 and has returned an average of 18.86% in 2024, Schiff argues that MicroStrategy’s performance is out of line with the broader market.

Schiff’s skepticism about MicroStrategy’s strategy isn’t new. He has consistently criticized the company’s heavy investment in Bitcoin, questioning the long-term viability of the cryptocurrency. In a recent jest, he even encouraged MicroStrategy’s founder, Michael Saylor, to buy the Bitcoin that the U.S. government was planning to sell from its seized Silk Road stash. This seemingly tongue-in-cheek advice highlighted Schiff’s belief that Bitcoin is inherently risky and that MicroStrategy is taking an unwise gamble by betting heavily on it.

Schiff’s latest prediction comes amid a broader debate about Bitcoin’s future. While some see it as a digital gold and a store of value, others remain skeptical about its long-term prospects. His assessment of MicroStrategy’s stock price, therefore, is likely to fuel this ongoing discussion about the future of Bitcoin and its impact on the traditional financial system.

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