Bitcoin Price Rises as Peter Schiff Warns MSTR Could See Losses

The Bitcoin price has jumped by a fraction of a percentage in the past 24 hours to trade at $88,150 as of 11 p.m., on a 10% surge in the daily trading volume to $19 billion.

The increase in BTC price happens as Bitcoin critic Peter Schiff warns that MSTR could still do worse in 2026. He criticized the company’s preferred stock, STRC, which now pays an 11% monthly dividend, calling it “desperate” because the company struggled to pay the original 10% dividend.

Schiff said this shows STRC is “junk” and that MSTR’s stock could fall more than it did last year.

How desperate can you be? You can’t even afford to pay 10%, since Strategy is losing money—so now you’re going to pay 11%. This just proves your preferred is junk. I wonder how much more you’ll be forced to pay by year-end. $MSTR will likely deliver even worse returns in 2026.

— Peter Schiff (@PeterSchiff) January 1, 2026

MSTR lost about 50% of its value in 2025 from a high above $400, with big drops in the second half of the year as Bitcoin fell below $100,000 in November. Schiff believes that if Bitcoin drops again, MSTR will face even more pressure. He also said that if Strategy were in the S&P 500, it would have been the sixth-worst-performing stock, showing how buying Bitcoin has hurt shareholders.

These concerns arise as MSCI will decide on January 15 whether companies like Strategy are considered investment funds. If not, MSTR could be removed from global indices, possibly causing $2.8 billion in outflows, according to JPMorgan, which would hurt the stock.

Market traders are watching closely. Polymarket shows a 77% chance that MSTR will be delisted from the MSCI index by March 31. Bitcoin’s price and the MSCI decision will be key for MSTR’s performance this year. Schiff’s warnings highlight worries about the company’s dividend plan, Bitcoin exposure, and index risks.

Bitcoin Price Analysis: Descending Wedge Signals Possible Upswing

Bitcoin (BTC/USD) is currently trading at $88,227 on the daily chart. Since reaching highs above $130,000 in late 2025, BTC has been in a downtrend. During this period, the price has formed a descending wedge pattern, shown in green on the chart.

A descending wedge usually signals a potential bullish reversal. It means BTC has been making lower highs and lower lows, but the wedge is narrowing, showing that selling pressure is weakening and a reversal could be near.

The RSI indicator, it currently reads 47.64, slightly below the neutral 50 level, with the RSI moving average at 44.56. This shows BTC is neither overbought nor oversold. Recently, the RSI has been rising, which suggests that bullish momentum may be slowly returning.

If the RSI continues upward and moves above 50, it would provide stronger evidence that the downtrend might be ending, supporting the idea of a trend reversal.

BTCUSDT Chart Analysis. Source: Tradingview

The chart also shows support around $85,000–$88,000, where BTC has found temporary stability. This level could act as a base for a potential upward move. A clear breakout above the wedge’s upper boundary would signal that buyers are returning, potentially triggering a stronger rally.

On the upside, the chart highlights three key resistance levels at $110,000, $120,000, and near $130,000, which were previous highs during the last uptrend. These levels are likely targets for any rally and areas where traders may take profits.

A confirmed breakout above the wedge and a rising RSI for stronger evidence of an emerging upward trend. If BTC fails to break above the wedge, it may continue consolidating in the $85,000–$88,000 range or even test lower support levels before attempting another upward move.

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