The host of Mad Money, Jim Cramer, has predicted that the price of bitcoin will fall to $ 12,000. Nevertheless, he has recommended bitcoin and ether for people who want to invest in crypto.
Jim Cramer’s Bitcoin Price Prediction
Jim Cramer, host of Mad Money, spoke about the future prospects for bitcoin on CNBC on Friday. Cramer is a former hedge fund manager who co-founded Thestreet.com, a website for financial news and literacy.
He was asked if he thinks bitcoin will bounce off the current level, or if BTC will go down another 50% or more.
He shared his bitcoin price prediction, and replied:
I think it goes to $ 12,000 where it was before this whole failure began.
“I think those involved with bitcoin need to take a different stance,” the Mad Money host stressed. “We need some guys who just say, ‘Look, this is the level.’ It’s typical of what happens when it’s really about to fall big. ” He stressed: “They can not let it go down anymore.”
Cramer on multi-conversations and micro-strategy
Cramer went on to talk about Microstrategy, the Nasdaq-listed software company that has amassed 129,218 BTC on the balance sheet. CEO, Michael Saylor, is a bitcoin bull. He was recently on CNBC and talked about bitcoin being the best investment for his company, and it’s a good time to buy BTC at the current level.
Microstrategy recently disproved the rumor that it faces a margin requirement for a bitcoin-backed loan from Silvergate Bank and will have to liquidate some BTC. Saylor explained that the company has more bitcoin to pledge and other security to provide for the loan.
However, Cramer said that if the lender changed the margin rates on crypto, Saylor would “be out in a second.”
Bitcoin plunged early Saturday morning, falling below $ 20K for the first time since 2020. At the time of writing, BTC is trading at $ 17,983, down 13% in the last 24 hours and almost 40% in the last seven days.
Mad Money host tweeted Saturday:
Ten percent down for bitcoin, and you get some nasty margin calls over the weekend… Amazing that there are no major institutions that support this.
He added in a follow-up tweet: “I wonder which rabbit Michael Saylor can pull out of his hat with his Microstrategy game plan. I wonder when he first raised money if he had this in mind. “
Earlier this month, Cramer provided some advice on investing in cryptocurrencies. He admitted that he owns ethereum, adding: “I would never dissuade you from buying crypto.” However, he said: “I prefer that you would do it in ethereum or bitcoin, which has the biggest consequences.”
In October last year, he said: “The whole crypto investment case rests with the Greater Fool Theory.” Microsoft co-founder Bill Gates made a similar comment this week that crypto is 100% based on the Greater Fool Theory, and stressed that he is not involved in it.
Cramer is not the only one predicting a massive drop in the price of bitcoin. Billionaire fund manager Jeff Gundlach said this week that he would not be surprised at all if BTC falls to $ 10K. Rich Dad Poor Dad author Robert Kiyosaki indicated that BTC could bottom out at $ 9K. Guggenheim Chief Investment Officer Scott Minerd said last month that BTC could fall to $ 8K.
What do you think of Jim Cramer’s prediction? Let us know in the comments section below.
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