Peter Schiff Opines: Bitcoin’s 2025 Magic Trick is Just a Fraud, Old Chap!

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Key Takeaways, Old Sport

Why Does Schiff Call Strategy’s Model a “Fraud”? Don’t Ask, Just Smirk.

Apparently, Schiff’s take is that Strategy’s fancy ledger doesn’t have enough earnings to pay for its crypto gamble. In plain English, it’s about as solvent as a sugar castle in a rainstorm.

Which Line Will Keep BTC’s Nose Above Water?

Per QCP Capital, the next bit of support on the charts might be around $92k and $80k, but don’t get your bowler hat in a twist-these are just the lines the fellas are watching while sipping tea.

Bitcoin, that darling of the digital age, had a promising 28% rise forecast for 2025-fancy that!-only to do a Houdini and vanish down to $95k after a weekend of unplanned ‘corrections’. Shock, horror! 🥸

With this underperformance, BTC and its high-flying cousin, Strategy (Mars, Nasdaq: MSTR), have become natural targets for the venerable Peter Schiff- that seasoned gold bug with a knack for hearty criticism-and a man who probably still dreams of the days when gold coins jingled in his pocket.

In a charming little post (formerly called Twitter), Schiff called Strategy’s business model-fancy talk for their BTC arbitrage-nothing short of a “fraud” that, like a bad penny, will end up in bankruptcy court, or perhaps in his collection of amusing stories. 🕵️‍♂️

And the beef? Schiff claims Strategy has no earnings to cover its debts, just the sort of thing that would make even a seasoned banker choke on his port.

Strategy’s Debt Debacle

Since 2020, the clever folks in Strategy’s employ have amassed a staggering 641,692 BTC- worth a cool $61 billion, or roughly enough to buy a small island if you’re feeling flush. They bagged these coins using debt (the traditional way, old boy), plus selling off bits of MSTR and other prized possessions. Their paper profit? A tidy $13 billion, thank you very much.

As for the debt, it’s about $8.2 billion-about the same as a bulk order of golf clubs-and the first big repayment is due sometime in 2028. Half of this mountain of money is set to be paid off by 2028 or 2029, so there’s no immediate cause for frothing at the mouth.

The wise say, “No need to panic just yet.” Besides, Jeff Dorman, a financial Yoda at Arca, insists Strategy’s cash flow isn’t exactly the Titanic-more like a sturdy racing yacht. The rumor of Strategy selling off BTC to cover its debts? Nonsense, says Mr. Dorman, especially since Saylor’s got his hand firmly on the tiller. No covenants, no trouble, old bean. Interest is low and manageable-like a good British weather day.

Schiff, ever the critic, also took a pop at BTC’s performance compared to good old gold, which has climbed above 4,100 again-clearly the tortoise in this race. He urged his followers, “Sell your Bitcoin and buy gold-before you end up looking the fool!” Ah, what a cunning lesson in market timing. 😉

To be fair, Schiff’s right-BTC has lagged behind gold since August, but when you stand back and squint, it’s just squaring off within a range, like a boxer waiting for the bell. Whether it bouts bullish or bearish remains a splendid mystery. 🎩

Meanwhile, QCP Capital suggests there’s still a fair bit of bearish betting on Bitcoin, eyeing perhaps a reversal at the noble levels of $92k or even a daring $80k, depending on how much tea you’ve had.

“Support lines at $92k, the same as last year’s Q4, with a CME gap that’s just begging for some action. But beware, the overhead supply is dense enough to make a banker sweat.”

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2025-11-18 08:19