Mad Money host Jim Cramer predicted that the bitcoin price would drop to $ 12,000. However, he recommended bitcoin and ether for people who want to invest in crypto– currencies.
Jim Cramer’s Bitcoin Price Prediction
Mad Money host Jim Cramer discussed bitcoin’s future prospects on CNBC on Friday. Mr. Cramer is a former hedge fund manager who co-founded Thestreet. See the article: GameStop focuses on launching the NFT market after a loss in the fourth quarter..com, a financial information and literacy site.
He was asked if he thinks bitcoin will rebound from its current level or if BTC will drop another 50% or more.
Sharing his bitcoin price prediction, he replied:
I think it gets to $ 12,000, where it was before this whole fiasco began.
“I think the people involved in bitcoin need to take a different stance,” the Mad Money host pointed out. “We need some guys to just say, ‘Look, this is the level.’ It is typical of what happens when he is about to take a big fall. She insisted that “they can no longer let him down”.
Cramer on margin calls and microstrategy
Cramer then spoke about Microstrategy, a Nasdaq-listed software company that has amassed $ 129.218 billion on its balance sheet. Its CEO, Michael Saylor, is a bitcoin fanatic. Read also: John Legend (Vibes) New NFT Project: What You Need to Know. He was recently on CNBC to say that bitcoin was the best investment for his business and now was a good time to buy BTC at its current level.
Microstrategy recently debunked rumors that it was facing a margin call for a bitcoin-backed loan from Silvergate Bank and liquidating BTC. Saylor explained that the company has more bitcoins to pledge and other collateral to provide the loan.
However, Cramer said that if the lender changed the margin rates on cryptocurrencies, Saylor “would be out in a second.”
Bitcoin plummeted early Saturday morning, dipping below $ 20,000 for the first time since 2020. As of this writing, BTC is trading at $ 17,983, down 13% in the past 24 hours and nearly 40% in the last. seven days.
The Mad Money host tweeted Saturday:
Ten percent less for bitcoin and you get some nasty margin calls over the weekend … It’s amazing that there aren’t any big institutions backing it.
He added in a following tweet: “I wonder which rabbit Michael Saylor can pull out of a hat with his Microstrategy game plan. I wonder if he had this in mind when he first raised money. “
Earlier this month, Cramer gave some advice on investing in cryptocurrencies. He admitted to owning ethereum, adding, “I will never discourage you from buying cryptocurrencies.” However, he added, “I’d rather you do it in ethereum or bitcoin, which have the biggest followers.”
In October last year, he said, “The whole cryptocurrency investment case is based on the dumbest theory. Microsoft co-founder Bill Gates made a similar comment this week, stating that crypto is based on the 100% on the dumbest theory, pointing out that he is not involved in it.
Cramer is not alone in predicting a massive drop in the price of bitcoin. Billionaire fund manager Jeff Gundlach said this week that he wouldn’t be surprised at all if BTC drops to $ 10,000. Robert Kiyosaki, author of Rich Dad Poor Dad, indicated that BTC could bottom out at $ 9,000. Scott Minerd, Guggenheim’s chief investment officer, said last month that BTC could drop to $ 8,000.
What do you think of Jim Cramer’s prediction? Let us know in the comments section below.