Jim Cramer Urges Investors to Buy Gold Instead of Bitcoin
- Jim Cramer, host of “Squawk on the Street,” advises investors to choose gold over Bitcoin.
- However, Bitcoin has outperformed gold this year, gaining +55% compared to gold’s 4.3%.
- The correlation between Bitcoin and gold in the market could also be significant.
- Cramer’s anti-crypto stance is often met with bullish rallies for Bitcoin.
- Cramer’s own ETF, LJIM, will be closed and liquidated due to heavy losses.
BTC vs XAU: Correlation and Market Performance
- Comparing historical performance, Bitcoin has provided a better return on investment than gold.
- Since August 2020, Bitcoin has gained +130% while gold has lost 2% against the dollar.
- In the last decade, Bitcoin has significantly outperformed gold, with a +5900% return compared to gold’s +81% from January 2016.
- Bitcoin and gold often exhibit correlation in market movements.
- Reducing exposure to volatility may justify focusing on gold, but abandoning Bitcoin completely may not be wise.
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Hot Take: Jim Cramer’s Advice Doesn’t Hold Up
- Despite Jim Cramer’s suggestion to buy gold instead of Bitcoin, the cryptocurrency has proven to be the better investment this year.
- Bitcoin’s superior performance and potential correlation with gold make it an attractive asset for investors.
- Cramer’s own ETF closure and liquidation add to the skepticism surrounding his advice.
- Ultimately, investors should consider their risk tolerance and market trends before deciding between Bitcoin and gold.
