As the price of Bitcoin breaks through $110,000 and the market is filled with expectations for institutional entry, economist and gold supporter Peter Schiff has once again made shocking remarks. In response to the event where Strategy (formerly MicroStrategy), led by Michael Saylor, increased its holdings by 397 BTC at an average price of $114,771 last week, Schiff bluntly stated: "The amount of Bitcoin you purchased is far from enough to support the price. Unless you make a significant entry, the price is likely to continue to decline. Note that the current price of Bitcoin is already 6% lower than your average cost of purchase last week." This sharp comment not only questions Strategy's accumulation strategy but also reveals the deep structural changes facing the current Bitcoin market: the pace of institutional accumulation is slowing, the demand foundation for Bitcoin is declining, and the trillion-dollar market is undergoing a "power transition."
- Peter Schiff's "sharp-tongued" comment: Is institutional purchasing power insufficient to support the price?
As a well-known gold supporter and cryptocurrency critic, Peter Schiff's remarks have always been incisive. His comments on Strategy's increase in Bitcoin holdings have once again drawn attention to the strength of institutional purchases.
Questioning the purchasing strength: Schiff believes that the 397 BTC acquired by Strategy is far from enough to support the price of Bitcoin, and unless there is a "significant entry," the price is likely to continue to decline.
Risk of price decline: He pointed out that the current price of Bitcoin is already 6% lower than the average cost at which Strategy purchased last week, implying that Strategy's buying behavior has not effectively boosted the market.
- Slowing institutional accumulation: Structural changes in the demand foundation for Bitcoin
For most of 2025, the bottom of Bitcoin appeared unassailable, supported by what seemed like an unlikely alliance between corporate finance departments and exchange-traded funds (ETFs). However, this foundation is now undergoing a transformation.
Institutional net buying falls below mining supply: Charles Edwards, founder of Capriole Investments, stated on X that for the first time in seven months, institutional net buying has fallen below the daily mining supply. He noted, "The situation is not good."
Slowing corporate purchasing pace: No company represents corporate Bitcoin trading better than Strategy Inc. However, in recent months, its purchasing pace has significantly slowed. Strategy added approximately 43,000 Bitcoins in the third quarter, the lowest quarterly purchase amount for the company this year.
Narrowing stock premium: CryptoQuant analyst JA Maarturn explained that this slowdown may be related to the decline in Strategy's net asset value. Investors had previously paid a high "net asset premium" for every dollar of Bitcoin on Strategy's balance sheet, but this premium has narrowed since mid-year. With fewer favorable valuation factors, issuing new shares to purchase Bitcoin no longer has the same appreciation effect, thereby weakening the motivation to raise funds.
Declining enthusiasm for "digital asset reserves": Companies like Metaplanet, which mimic Strategy's model, have recently seen their stock prices drop significantly, falling below the market value of their Bitcoin holdings. This highlights that investor enthusiasm for the "digital asset reserve" business model is waning.
Structural constraints: These examples reflect structural constraints rather than a loss of belief. When equity or convertible bond issuances no longer enjoy market premiums, capital inflows will dry up, and corporate capital accumulation will naturally slow.
- Unstable ETF fund flows: A new phase for the bidirectional market
Spot Bitcoin ETFs have long been seen as automatic absorbers of new supply, but similar signs of weakness are now emerging.
Unstable fund flows: For most of 2025, these financial investment tools dominated net demand. However, by late October, fund flows began to become unstable. As portfolio managers adjusted their positions, the risk sector also reduced investment exposure based on changing interest rate expectations, leading to negative fund inflows in certain weeks.
Bidirectional market: This volatility marks a new phase in Bitcoin ETF behavior. Data from SoSoValue corroborates this shift. In the first two weeks of October, digital asset investment products attracted nearly $6 billion in inflows. However, by the end of the month, due to redemptions exceeding $2 billion, some gains were reversed. This pattern indicates that Bitcoin ETFs have evolved into a true bidirectional market. They still provide ample liquidity and avenues for institutional investor participation, but they are no longer tools for one-way accumulation. When macroeconomic signals fluctuate, ETF investors can sell as quickly as they bought.
- Market impact of Bitcoin: Increased volatility and macro reflection
This changing situation does not necessarily indicate an economic recession, but it does mean that volatility will be greater.
Short-term traders and macroeconomic sentiment: As the absorption capacity of corporations and ETFs weakens, the price movements of Bitcoin will increasingly be influenced by short-term traders and macroeconomic sentiment.
Weakened structural support: The structural bids that once provided support are weakening. During periods of insufficient supply and demand, the ability to suppress volatility decreases due to fewer stable buyers, which may exacerbate intraday price fluctuations. Although the halving policy in April 2024 mechanically reduces new supply, scarcity alone cannot guarantee price increases without sustained demand.
Macro reflection phase: The correlation of Bitcoin is changing. As balance sheet expansion slows, Bitcoin may once again align with broader liquidity cycles. Rising real yields and a strengthening dollar may exert pressure on prices, while a loose market environment could allow it to regain a leading position in risk-on rallies. Essentially, Bitcoin is re-entering a macro reflection phase, behaving less like digital gold and more like a high-beta risk asset.
- Long-term prospects and adaptability: The resilience of Bitcoin
Despite facing short-term challenges, this does not negate the long-term development prospects of Bitcoin as a scarce, programmable asset.
Impact of institutional factors: This reflects the increasing influence of institutional factors, which once shielded Bitcoin from retail price fluctuations. The mechanisms that initially propelled Bitcoin into mainstream portfolios are now more closely linking it to the gravitational pull of capital markets.
Adaptability: If history serves as a reference, Bitcoin often adapts: when one demand channel slows, another often emerges—whether from sovereign reserves, fintech integration, or a renewed increase in retail participation during macroeconomic easing cycles.
Conclusion:
Peter Schiff's comments on Strategy's increase in Bitcoin holdings, along with analyses from Capriole Investments and CryptoQuant, collectively reveal the structural changes currently facing the Bitcoin market. The slowing pace of institutional accumulation and unstable ETF fund flows are leading to a decline in the demand foundation for Bitcoin, and market volatility may intensify. However, this is not the end of Bitcoin; rather, it is a necessary path toward maturity and institutionalization. The long-term development prospects of Bitcoin as a scarce, programmable asset still exist, and its resilience will enable it to seek new demand channels in an ever-changing market environment.
Related reading: Why is the price of Bitcoin (BTC) calm amid the "truce" in the China-U.S. trade war?
Original article: “Is Bitcoin (BTC) 'Institutional Demand' in Trouble? Peter Schiff Mocks Strategy for Weak Accumulation”
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