Peter Schiff used his podcast this week to argue that BTC holders are ignoring what Strategy’s decision to sell some of its stack means for the asset.

According to him, the company built by Michael Saylor was the real floor under Bitcoin’s price, and that floor is now gone.

Schiff Says Strategy’s Selling Exposes the Real Backbone of Crypto

In the hour-long episode aired on YouTube on July 9 and covering everything from the reported collapse of the Iran peace deal to the DOGE shutdown, Schiff claimed that Bitcoin supporters were being willfully blind to Strategy’s changing role in the market. According to him, the firm’s buying had become a major source of demand that helped support BTC’s price.

“Bitcoiners are delusional right now, or in denial about what’s happening with Strategy,” he said. “They do not understand how important Strategy has been to Bitcoin, to the whole ecosystem, the whole industry, because it has provided all of that buying that not only put a floor beneath Bitcoin and kept it going up, but legitimized it in the eyes of the financial community.”

However, that dynamic, in Schiff’s opinion, has now changed after the company recently sold 3,588 BTC for some $216 million instead of adding to its holdings. Furthermore, the economist noted that Strategy disposed of the stash at an average price of about $60,000 after buying them for roughly $75,000, meaning it had booked a loss of around $15,000 on each of them.

The issue, though, isn’t even the “huge loss,” as Schiff put it, that Saylor suffered from the sale, but rather the mental effect that selling will have on the community.

“It’s not just that he’s not buying or that he’s selling; it’s the psychology,” he insisted.

The crypto critic then suggested that Saylor will sell a lot more of Strategy’s Bitcoin, possibly all of it at some point, to “lower his exposure to raise his cash so he can keep on paying the dividends.”

He also flagged the company’s preferred shares, which were trading around $86 despite a dividend hike to 12%, as a sign that investors no longer had confidence in BTC.

“The game is over, and the market is telling you that the confidence is not there anymore,” Schiff told listeners. “All the hype didn’t pan out, or whatever had panned out has already panned, and now it’s just about the last man out.”

Other Analysts Are Reading the Same Sale Very Differently

Not everyone sees Strategy’s decision to sell as bearish. For example, Zach Pandl, Grayscale’s head of research, recently argued that the sale could restore confidence in the firm’s financing structure instead of damaging BTC’s long-term outlook.

He noted that Strategy still owned $53 billion in Bitcoin against a $7 billion debt, while its cash reserves have increased to around $2.55 billion, which is enough to cover 17 months of dividend payments.

Another industry observer, HashKey Group Senior Researcher Tim Sun, made a similar point, telling CryptoPotato that a slower Strategy could actually help Bitcoin build a healthier price floor based on organic demand instead of financing-driven buying.

Meanwhile, Bitwise’s Matt Hougan expects Strategy to matter less as a buyer in the next cycle, with institutions like Morgan Stanley and Wells Fargo potentially taking over as the OG cryptocurrency’s main source of demand.

Source: CryptoPotato