MSTR Stock Price as Peter Schiff Warns STRC Is Draining Bitcoin Demand After Record 5M Volumes
Highlights
- MSTR stock price is shedding gains after an over 3% drop in one day.
- Despite the drop, STRC is recording a surge in volumes, with the recent 5M shares traded being the 4th highest volumes in history.
- MSTR is flashing warning signs, with the price threatening a drop to $170.
Strategy (NASDAQ: MSTR) stock price closed trading on May 13 at $178 after dropping by 3.4%. On Thursday, it opened at $176, a 1% drop from the previous day. But this drop did not spill over to Strategy’s STRC preferred stock that saw the fourth largest volumes in history after 5 million shares were traded. Bitcoin critic Peter Schiff now says that STRC is taking away demand from Bitcoin because people are chasing the 11.5% yield that BTC does not guarantee.
Schiff Warns STRC is Weakening Bitcoin’s Demand
STRC had the fourth-highest volume in history on May 14 with five million shares traded at above $100, even if MSTR stock price is down. This was enough to buy 3,094 BTC. The highest volume for STRC is 14.7 million shares on April 14.
On Tuesday, STRC had just raised another $240 million to buy Bitcoin. But Schiff now says that these numbers are bad for Bitcoin and might inhibit its move towards $100,000.
In an X post, Schiff says that people are now chasing the 11.5% yield that they can get with STRC rather than buy Bitcoin, where there is no guarantee of getting any return until the price is going up. And right now, it is down by 2% in seven days, and MSTR stock price is down 3%.
“So Bitcoin demand is being redirected to $MSTR, which buys Bitcoin with the money it gets from selling STRC. The problem for MSTR is that it must pay 11.5% annually to buy it,” Schiff said.
This statement is just Schiff doubling down on his past allegations against MSTR stock price, saying that STRC is an obvious Ponzi scheme, saying it is not sustainable to raise money to buy Bitcoin and then use gains to pay yield.
But STRC just keeps breaking records despite Schiff’s opinion because on May 14, it saw the biggest pre-market increase it has ever seen, after 69,000 shares were traded.
MSTR Stock Price Outlook as Warning Sign Appears
MSTR stock price might drop to $170 after it went below the lower trendline of a rising channel. The channel started on April 17 when the price went from $154 and reached $197 on May 11. This shows that bears are slowly creeping in, and the MSTR shares might reach $170.
The RSI has a reading of 56, and this is a warning sign because it has dropped from 69 on May 11 to lose 13 points in just three days. This reading is also going down, and this shows that there are more people selling now than buying.
The AO reading, where the bars are red even if they are on the positive side, is also showing that the price might drop further than the 3% seen yesterday and reach $170.
These two readings show that the journey from $119 to $197 from April 1 to May 11 might be over, and MSTR stock price is about to go down to $170.
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Frequently Asked Questions (FAQs)
1. Why is MSTR stock price down today?
2. How does STRC volumes affect MSTR price?
3. Will MSTR stock price drop?
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