Gold advocate and prominent economist Peter Schiff has made a bold prediction regarding MicroStrategy’s MSTR stock, suggesting it could face a significant crash in the future. This forecast is particularly noteworthy for Bitcoin, given the substantial stake that MicroStrategy and its co-founder Michael Saylor hold in the BTC ecosystem.

Schiff took to X (formerly Twitter) to share his prediction of an eventual MSTR price crash, stating that the stock is likely the most overvalued in the Morgan Stanley Capital International (MSCI) World Index. He warned of a potential “real bloodbath” when MSTR finally experiences a downturn.

The impact of an MSTR crash on Bitcoin could be substantial, potentially serving as a black swan event for the leading cryptocurrency. This is due to MicroStrategy’s significant investment in Bitcoin, as the company currently ranks as the fifth-largest Bitcoin holder with 252,220 BTC in its possession. Only Satoshi Nakamoto, Binance, BlackRock, and Grayscale surpass MicroStrategy’s holdings.

A crash in MSTR stock, as predicted by Schiff, could have negative repercussions for Bitcoin’s price. Depending on the severity of the crash, MicroStrategy might be forced to liquidate its BTC holdings, which account for over 1% of the total Bitcoin supply. Such a move would undoubtedly place significant selling pressure on the cryptocurrency.

Despite Schiff’s dire predictions and concerns about potential impacts on Bitcoin, MicroStrategy’s co-founder Michael Saylor has repeatedly stated that the company has no intentions of selling its Bitcoin holdings. Saylor has even challenged Bitcoin skeptics like Schiff, suggesting that MSTR is the “perfect instrument” to short if they truly oppose the flagship cryptocurrency.

Saylor has promised that MicroStrategy will maintain its leveraged long position on Bitcoin and expressed indifference towards people shorting MSTR stock. He emphasized the company’s consistent policy of acquiring and holding Bitcoin, leaving it up to shareholders to decide whether they want to trade their shares.

It’s worth noting that MSTR stock has outperformed every stock in the S&P 500 and even Bitcoin itself. Since MicroStrategy adopted its Bitcoin Strategy in August 2020, the stock has surged by over 1,000%. According to MarketWatch data, MSTR continues to outpace other assets in 2023, boasting a year-to-date (YTD) gain of 249%.