Wall Street Banks 'Don't Believe Their Own Bullish Views' on Bitcoin

Financial commentator Peter Schiff criticized Wall Street banks for publicly advocating bullish views on Bitcoin but not backing their predictions with capital. He said they 'don't believe their own bu***hit' and stay bullish to keep crypto clients happy.

Schiff noted that banks like Citigroup, Standard Chartered, Bernstein, JPMorgan, and Fundstrat have set year-end targets for Bitcoin ranging from $82,000 to $250,000. However, none of these institutions hold Bitcoin on their balance sheets, instead offering custody services, trading desks, and blockchain infrastructure.

Strategy's common stock MSTR dropped 1.7% for the week, while Bitcoin rose around 3%, widening the stock's discount to its Bitcoin holdings to almost 40%. The high yield of Strategy's preferred shares (STRC) at 13.7% indicates investors doubt the dividend is safe.

Schiff also pointed out that Michael Saylor's company sold $230.3 million in Bitcoin, reversing his 'never sell' stance. He expects Strategy to cut its dividend as investors anticipate a decline in Bitcoin's value.