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Influential economist Peter Schiff predicted a crash Bitcoin (CRYPTO: BTC) development company MicroStrategy Inc. (NASDAQ:MSTR), calling it the most overvalued stock in the world MSCI World Index.
What happened: In an X-post on Tuesday, Schiff wrote: “$MSTR has to be the most overvalued stock in the MSCI World Index. When it finally crashes, it will be a real bloodbath!”
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The MSCI World is a globally viewed stock market index that tracks the performance of approximately 1,500 large and mid-cap companies from 23 developed countries. MicroStrategy stock was added to the index earlier in March and has a weighting of 0.039380% based on June 3, 2024 data.
The MSCI World Index has gained almost 24% in 2023 and has returned an average of 18.86% so far in 2024. MicroStrategy stock is up 220.64% this year.
The stock’s Relative Strength Index, or RSI, was just above 70 at the time of writing, according to Trading View, indicating overvaluation. Interestingly enough, Wells Fargo & Co. (NYSE: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 Saylorto buy the large amount of Bitcoin that the US government planned to sell. Schiff’s recommendation was made in jest, following the US government’s decision to liquidate 69,370 BTC it seized from the dark web marketplace Silk Road.
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Why it’s important: Schiff is known for being critical of all things Bitcoin, and MicroStrategy, which holds vast amounts of cryptocurrency, is no exception.
Earlier this month, Schiff encouraged this Michael Saylorthe founder of MicroStrategy, to borrow billions to buy seized Bitcoin that the US government might sell, in what was a veiled joke on the company’s Bitcoin strategy.
He has previously questioned the ‘never sell your Bitcoin’ strategy advocated by Saylor, also backed by presidential hopefuls Donald Trump on the campaign trail.
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This article Peter Schiff predicts a ‘bloodbath’ for MicroStrategy stock, calls it the most overvalued stock on the MSCI World Index, originally appeared on Benzinga.com
