Jim Cramer’s Views on Bitcoin
According to Jim Cramer, the host of CNBC’s Mad Money show, bitcoin is topping out. Cramer, a former hedge fund manager, believes that the cryptocurrency has reached its peak and may not see further significant gains. He made this comment during Mad Money’s Lightning Round while responding to a caller’s question about stocks associated with cryptocurrencies.
Direct Bitcoin Investment or Stocks?
Many investors are choosing to invest in stocks of companies linked to cryptocurrencies instead of buying bitcoin directly. Some popular choices include Riot Platforms, Marathon Digital, Microstrategy, and Coinbase. This indirect approach allows investors to gain exposure to the crypto market without directly holding digital coins.
Rising Optimism and Bitcoin’s Rally
The recent surge in bitcoin’s price, surpassing $47,000, is driven by increasing optimism regarding the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). The SEC is expected to grant approval to several applicants on Wednesday.
Recognition of Bitcoin’s Importance
Last week, Jim Cramer emphasized that bitcoin cannot be killed and is a technological marvel. He urged people to recognize that it is here to stay. Cramer’s positive views on bitcoin have often been associated with a bearish swing in the crypto market, leading some to joke about the “Cramer effect.”
Jim Cramer’s Relationship with Bitcoin
Jim Cramer was initially supportive of bitcoin, recommending a 5% allocation to the cryptocurrency in portfolios. However, he divested his holdings due to concerns about ransomware and China’s mining crackdown. Cramer later invested in ether but expressed concerns about certain crypto firms, including Binance, FTX, and Tether. By December 2022, he advised investors to exit the crypto market due to anticipated SEC actions against non-compliant firms.
Hot Take: Bitcoin’s Future
While Jim Cramer believes that bitcoin is topping out, the crypto market remains unpredictable. Investors continue to have different perspectives on the future of bitcoin and whether it has reached its peak. It remains to be seen how regulatory decisions and market forces will shape the trajectory of the cryptocurrency. As with any investment, it is important to do thorough research and consider multiple viewpoints before making decisions in the volatile crypto market.
By
By
By
By
By