MSTR Stock Drops Below $300 Amid Bitcoin Slump; Schiff Warns of ‘Brutal’ Bear Market

The MSTR stock has experienced a significant decline today as the Bitcoin price downtrend continues, with the flagship cryptocurrency dropping below the psychological $110,000 level. Amid this development, Peter Schiff has warned about a brutal bear market for BTC treasuries, which he believes might even cause Strategy to fail.

MSTR Stock Drops Below $300 Amid Bitcoin Decline

TradingView data shows that the Strategy stock is trading below $300 for the first time since April earlier this year. The stock is currently down over 8% today, trading at around $294.

MSTR Daily ChartMSTR Daily Chart
Source: TradingView; MSTR Daily Chart

This comes as the Bitcoin price tumbles, dropping to an intraday low of $108,713 from an intraday high of $113,722. The MSTR stock and BTC are known to share a positive correlation, given Strategy’s Bitcoin exposure.

It is worth noting that the stock has been on a decline for a while now, dropping over 13% in the last month. Meanwhile, with today’s decline, MSTR has now lost all its year-to-date (YTD) gains and is now in the red by almost 2%.

Meanwhile, Michael Saylor and Strategy have continued to accumulate more Bitcoin amid the decline in MSTR stock, adding 850 BTC last week. The company currently holds 639,835 BTC, which it bought for $47.33 billion. Notably, the company has sold MSTR shares over the past few weeks to fund its recent purchases.

Peter Schiff Warns Of Bear Market For Bitcoin Treasuries

In an X post, Bitcoin critic Peter Schiff warned that this will be a brutal bear market for BTC treasury companies. He remarked that he is not sure if any of these companies, including Strategy, will survive it.

The renowned economist had earlier in the day warned that Ethereum was in a bear market and that Bitcoin is next. Schiff had also noted that while many companies were busy copying Saylor’s “harebrained business strategy,” few had noticed that the MSTR stock was down 45% from its November 2024 high of $473.

Analyst Peter DiCarlo noted that MSTR is breaking down after briefly holding support, and that the bounce he had expected from that flow a few weeks ago never materialized. The analyst added that price is now sitting at the THT point of control and pressing into the smart money zone.

He claimed that this level needs to hold and that if it fails to do so, the MSTR stock could be in “serious trouble” over the next couple of months. His accompanying chart showed that the stock could still drop to as low as $240.

Source: https://coingape.com/news/stocks/mstr-stock-drops-below-300-amid-bitcoin-slump-schiff-warns-of-brutal-bear-market/