Influential economist Peter Schiff predicted a crash for Bitcoin BTC/USD development company MicroStrategy Inc. MSTR, terming it the most overvalued stock in the MSCI World Index.
What Happened: In an X post on Tuesday, Schiff wrote, “$MSTR has got to be the most overvalued stock in the MSCI World Index. When it finally crashes, that’s gonna be the real bloodbath!”
The MSCI World is a widely watched global stock market index that tracks the performance of about 1500 large and mid-cap companies from 23 developed nations. Added to the index earlier in March, MicroStrategy stock has a weightage of 0.039380% as of June 3, 2024 data.
The MSCI World Index gained nearly 24% in 2023, and so far in 2024, it has returned an average of 18.86%. The MicroStrategy stock has surged 220.64% year-to-date.
The stock’s Relative Strength Index, or RSI, was just above 70 as of this writing, as per Trading View, suggesting overvaluation. Interestingly, Wells Fargo & Co. WFC, which is also part of the index, had a higher RSI of 76.13.
This prediction comes in the wake of Schiff’s earlier suggestion to MicroStrategy’s founder, Michael Saylor, to purchase the large quantity of Bitcoin that the U.S. government planned to sell. Schiff’s recommendation was made in jest, following the U.S. government’s decision to liquidate 69,370 BTC it had seized from the dark web marketplace, Silk Road.
Why It Matters: Schiff is well-known to be critical of all things Bitcoin, and MicroStrategy, which sits on huge stashes of the cryptocurrency, is no exception.
Earlier this month, Schiff encouraged Michael Saylor, MicroStrategy’s founder, to borrow billions to buy the seized Bitcoin that the U.S. government would potentially sell, in what was a veiled jibe at the company’s Bitcoin strategy.
He has previously questioned the ‘never sell your Bitcoin' strategy advocated by Saylor, also backed by presidential hopeful Donald Trump on the campaign trail.
Price Action: At the time of writing, Bitcoin was exchanging hands at $67,078.87, down 0.51% in the last 24 hours, according to data from Benzinga Pro. Shares of MicroStrategy closed 0.30% higher at $219.70 during Tuesday’s regular trading session.
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