MicroStrategy's real intention in leveraged Bitcoin purchases is to manipulate BTC price, claims Peter Schiff ⋆ ZyCrypto

MicroStrategy, the company founded by Michael Saylor that has made buying Bitcoin (BTC) part of its corporate strategy, made headlines after it recently purchased 9,245 BTC using debt.

Prominent Bitcoin critic and gold advocate Peter Schiff has revealed the alleged true intent behind MicroStrategy's ongoing wave of Bitcoin accumulation.

MicroStrategy supports Bitcoin?

Peter Schiff has caused quite a stir on the X platform with his recent comments on Michael Saylor's MicroStrategy.

Schiff claimed in a Tuesday post that MicroStrategy had already suffered a $115 million loss on Bitcoin, which it recently purchased with borrowed money. The long-time crypto skeptic wonders why Saylor always borrows money to buy more Bitcoin after a parabolic rally.

“It appears his true intention is to manipulate the price of Bitcoin higher by dumping his own $MSTR shares,” Schiff said.

Saylor and the Tysons Corner, Virginia-based company are no strangers to using BTC as collateral to borrow cash and buy more Bitcoin. ZyCrypto reported that MicroStrategy purchased $623 million worth of Bitcoin with $592.3 million from its recent convertible note offering and excess cash. The company currently holds a staggering 214,246 BTC, over 1% of the total supply of Bitcoin.

Bitcoin enthusiasts have praised Saylor for his aggressive BTC strategy.

“It is the best investment asset. So the end goal is to acquire more Bitcoin,” MicroStrategy’s chairman recently told Yahoo Finance. “Whoever gets the most Bitcoin wins. There is no other endgame.”

In another tweet, Saylor claimed that MicroStrategy (MSTR) fell 16%, presumably because the company is dumping shares to buy more Bitcoin. “CNBC keeps its viewers in the dark while Bitcoin whales quietly dump their stacks,” he added.

As if that weren't enough, the Goldbug imagines a scenario in which the price of Bitcoin falls to $10,000 and MicroStrategy is in the red by a staggering $5.5 billion.

Main problem with Bitcoin ETFs

Schiff also had a few things to say about spot Bitcoin ETFs.

Unlike the Bitcoin market, which operates 24/7 worldwide, the liquidity of spot Bitcoin ETFs is limited to US market hours only. With BTC price plunging 6% overnight, ETF buyers were unable to exit the market. They had to wait until the market reopened in the morning. “It’s very frustrating to watch helplessly and not be able to get out,” Schiff said.

The Alpha cryptocurrency is now trading well below its 2021 all-time high of $69,044, despite silver's market cap reversing and rising to new highs above $73,737 just last week.

What's next for the Bitcoin price?

Bitcoin’s current bearish momentum comes at a time when spot ETFs are seeing their largest outflows. The Federal Open Market Committee's expected press conference later today appears to be another key headwind. Fed Chairman Jerome Powell will announce whether interest rates will be revised and share the committee's outlook for the economy during the conference.

Apart from this, the market looks threatening for bulls given possible macroeconomic turmoil.

“Nearly $500 million has flowed out of spot BTC ETFs in the last two trading days,” noted crypto commentator Tedtalksmacro on X.

“Traders taking a wait-and-see approach (or just exiting) ahead of the FOMC and the US tax season are possible reasons for the slowdown. Regular programming will resume, but some will chop first.”

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