Investment Strategy Tumbles Nearly 7% as Peter Schiff Sounds Alarm Bells
Gold bug turned crypto critic Peter Schiff just dropped another warning bomb—and markets are feeling the shockwaves.
The Numbers Don't Lie
A specific trading strategy got hammered, shedding almost 7% following Schiff's latest bearish commentary. The drop reflects ongoing tension between traditional finance skeptics and crypto innovators.
Schiff's track record of crypto criticism continues to influence short-term movements, though long-term holders largely shrug off the noise. The volatility highlights how celebrity opinions still swing digital asset prices—for better or worse.
Timing is everything in markets, and today's movement proves even outdated arguments can move needles when delivered with enough conviction. Another reminder that in finance, sometimes the loudest voices get temporary traction regardless of substance.
Amid this turbulence, some investors are broadening their search to names beyond the usual crypto proxies. HYLQ Strategy Corp has been gaining traction as a regulated equity vehicle tied to HyperLiquid’s HYPE token, positioning itself as one of thebridging decentralized finance with public-market safeguards. For traders seeking diversification, its approach highlights how crypto exposure can be managed through a listed framework rather than pure leverage.
Visit HYLQLiquidation cascade rattles traders
The downturn was fueled by a sharp wave of leverage unwinding. Data showed more than $226 million in crypto positions were liquidated in a single hour, with long traders absorbing nearly all the damage. ethereum led the rout with $107 million in positions erased, while Solana, XRP, and BNB also faced notable wipeouts. The forced selling revealed just how fragile market structure becomes when open interest is elevated, as cascading liquidations amplify even modest price moves.
Bitcoin slips below key level
For Bitcoin, the break under $111,000 marked its lowest point in two weeks, sparking concerns that support in the $108,000–$109,000 zone may soon be tested. Technical indicators point to weakening momentum. TradingView’s analysis labeled the coin a “Strong Sell” on moving averages, while the Relative Strength Index (RSI) hovered near 42, a sign of fading demand. Analysts caution that if Bitcoin fails to stabilize, the next significant support could sit closer to $104,000, a level that previously served as a base during summer consolidation.
MicroStrategy mirrors Bitcoin’s volatility
MicroStrategy’s stock has once again moved in tandem with Bitcoin’s price action. The company’s shares sank 6.67% to $301.76 during afternoon trading, extending a broader downtrend that has erased more than 13% in the past month. The decline also wiped out its year-to-date gains, leaving MSTR slightly in the red for 2025.
The company recently added 850 BTC worth nearly $100 million to its already massive holdings of 639,835 BTC. The purchase was funded through share sales rather than debt, a strategy designed to avoid additional leverage. However, equity dilution remains a sore point with investors, who have punished the stock despite Michael Saylor’s unwavering Bitcoin-first approach.
Peter Schiff warns of bear market for Bitcoin treasuries
The decline has also reignited warnings from long-time bitcoin critic Peter Schiff. In a post on X, Schiff argued that this could mark the start of a “brutal bear market” for companies holding Bitcoin as a core treasury asset. He questioned whether firms like MicroStrategy can survive if BTC enters a prolonged downturn, noting that MSTR shares are already down 45% from their November 2024 peak of $473.
Ethereum just tanked below $4,000. Despite all the Ethereum Treasury company buying, the #2 crypto is now in an official bear market, down 20% from its August record high. Bitcoin is next.
— Peter Schiff (@PeterSchiff) September 25, 2025
Schiff also pointed out that while many corporations attempted to emulate Michael Saylor’s strategy of converting balance sheets into Bitcoin holdings, few accounted for the risks of equity dilution and volatile asset values. His remarks have added further weight to investor skepticism about whether the “Bitcoin treasury” model can withstand DEEP market corrections.
Analysts warn of deeper downside
Beyond Schiff’s macro critique, technical analysts are also sounding alarms. Market strategist Peter DiCarlo noted that MSTR recently broke down after failing to sustain support during September’s volatility. He highlighted that the stock is now pressing into what he calls the “smart money zone,” a level where institutional players dictate direction. According to his charts, if MicroStrategy fails to hold NEAR $290–$300, shares could slide further, with $240 flagged as the next major downside target.
$MSTR is breaking down after briefly holding support.
The bounce we expected from that FLOW a few weeks back never came.
Now price is sitting at the THT point of control and pressing into the smart money zone.
This level needs to hold — if it fails, $MSTR could be in serious… pic.twitter.com/WkRfVzw5MF
— Peter DiCarlo (@pdicarlotrader) September 25, 2025
DiCarlo stressed that while the Bitcoin correlation is undeniable, MSTR’s repeated equity offerings are weighing on sentiment and may leave the stock more vulnerable to steep retracements than Bitcoin itself.
That concern has pushed many investors to look for crypto-linked equities that offer upside without the same dilution risks. In that search, HYLQ Strategy Corp (CSE: HYLQ) is increasingly being noticed. Over the last two days, the company announced it had finalized the closing of its non-brokered private placement, raising close to CAD $8 millionin total proceeds across both tranches. Each unit was priced at CAD $1.50 and included a share plus a warrant exercisable at CAD $1.75, giving investors both immediate exposure and future upside potential. The fresh capital strengthens HYLQ’s ability to keep building its balance sheet around HyperLiquid’s HYPE token and to expand its footprint in one of DeFi’s fastest-scaling ecosystems.
Alongside the financing, HYLQ disclosed the purchase of another 5,000 HYPE tokens at an average price of about $45.32, bringing its total holdings to 53,961.53 tokens. That disciplined accumulation strategy mirrors what Strategy did with Bitcoin but is focused instead on HyperLiquid, a decentralized derivatives exchange that has already processed more than $2.5 trillion in lifetime volume and regularly clears billions in daily trades. HyperLiquid’s efficiency, including sub-second settlement times, zero gas fees, and a risk engine designed to prevent cascading liquidations, has made it one of the most resilient platforms in the space.
We purchased another 5,000 $HYPE $HYLQ now holds 53,961.53 $HYPE tokens at an average price of $45.32
We will continue to stack.
Hyperliquid. pic.twitter.com/KtF59cagbA
— HYLQ (@HYLQstrategy) September 25, 2025
What sets HYLQ apart is that this DeFi exposure comes within the framework of a regulated public listing. By trading on the Canadian Securities Exchange, the company provides quarterly filings, audited disclosures, and access through major brokers like Interactive Brokers and Questrade. For investors who want crypto-linked growth without the operational complexity of managing tokens directly, HYLQ offers a rare, regulated pathway into the heart of decentralized trading.
Buy HYLQOutlook: volatility ahead
With Bitcoin under pressure and Ethereum losing more than 15% in a week, crypto markets are navigating a fragile environment. Analysts note that reclaiming momentum above $112,000 WOULD help restore confidence, but until then, heightened volatility is likely. For MicroStrategy, much hinges on Bitcoin’s trajectory. If BTC extends its slide toward $104,000, MSTR could face even steeper losses, potentially testing DiCarlo’s $240 projection. Conversely, any rebound could spark a sharp relief rally, highlighting once again how tightly the company’s fate is bound to the world’s largest cryptocurrency.
