Jim Cramer Anticipates a Significant Downturn for 'Mr. Bitcoin': Lower Prices on the Horizon
In 2021, Cramer made it public that he sold off a significant portion of his bitcoin holdings.
Jim Cramer, the former hedge fund manager and well-known host of CNBC's Mad Money, upheld his recently negative view on cryptocurrency during Tuesday evening's broadcast. This standpoint stood in stark contrast to the sentiment expressed by another hedge fund manager on CNBC earlier the same day.
"I cannot advocate for gold given its poor performance; nor can I support bitcoin (BTC) because I have reservations about investing in something when Mr. Bitcoin seems poised for a substantial decline."
While it's unclear whether "Mr. Bitcoin" referred to Sam Bankman-Fried's ongoing trial or to bitcoin as a whole, Cramer's bearish perspective was evident.
Although bitcoin is significantly below its all-time high of $68,000 reached during the bullish market of 2021, the cryptocurrency has still demonstrated a 68% increase in value since the beginning of this year.
In June 2021, Cramer had previously revealed that he sold off a substantial portion of his bitcoin holdings in response to China's crackdown on crypto miners. During the same period, he also highlighted structural issues with bitcoin and foresaw a potential further decline in its price.
In an earlier appearance on CNBC on Tuesday, billionaire hedge fund mogul Paul Tudor Jones expressed his admiration for both bitcoin and gold. He attributed this endorsement to the combination of extensive geopolitical risks and the escalating levels of U.S. government debt.
Read more: The FTX Founder's Trial: Unveiling the Intriguing Testimonies and Alarming Financial Shenanigans