The host of Mad Money, Jim Cramer, has predicted that bitcoin’s price will fall to $12,000. However, Cramer has made a recommendation for crypto investors to use ether and bitcoin.
Jim Cramer’s Bitcoin Price Prediction
CNBC’s Mad Money host Jim Cramer spoke on Friday about bitcoin’s future prospects. Cramer was an ex-hedge fund manager and co-founded Thestreet.com. This financial news website provides information for investors.
When asked if he believes bitcoin will bounce off its current levels or if BTC would fall another half-point, he replied that a yes.
He shared his prediction for bitcoin prices and he responded:
According to me, it could reach $12,000 where it was prior to this fiasco.
“I think the people involved with bitcoin have to take another stand,” the Mad Money host stressed. “We need some guys to just say, ‘Look this is the level.’ That’s typical of what happens when it’s about to really drop big.” He emphasized, “They can’t let it go down anymore.”
Cramer talks about Margin Calls and Microstrategy
Cramer went on to discuss Microstrategy. This Nasdaq-listed company has accumulated 129 218 BTC. Michael Saylor is the CEO of Microstrategy and a Bitcoin bull. CNBC interviewed him recently about Bitcoin being the best way to invest for his company. At the moment, it’s a good time of year to purchase bitcoin.
Microstrategy has debunked the myth that it faces a margin call from Silvergate Bank for a Bitcoin-backed loan. It will have to liquidate some BTC. Saylor said that there is more bitcoin available to pledge, as well as other collateral for the loan.
However, Cramer said if the lender changed the margin rates on crypto, Saylor “would be out in a second.”
Bitcoin dropped below $20K on Saturday morning. This was the lowest level since 2020. BTC trades at $17.983, down almost 40% in the last 7 days and 13% for the past 24hrs.
The Mad Money host posted this tweet Saturday
Ten percent down for bitcoin and you get some nasty margin calls over the weekend … Amazing that there are no big institutions propping this up.
He added in a follow-up tweet: “I wonder what rabbit Michael Saylor can pull out of a hat with his Microstrategy gameplan. I wonder when he first raised money if he had this in mind.”
Cramer offered some tips on investing in cryptocurrency earlier this month. He admitted that he owns ethereum, adding: “I would never discourage you from buying crypto.” However, he said: “I would prefer that you would do it in ethereum or bitcoin, which have the largest followings.”
In October last year, he said: “The whole investment case for crypto rests on 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, emphasizing that he is not involved in it.
Cramer isn’t the only person predicting bitcoin’s massive drop in price. Billionaire fund manager Jeff Gundlach said this week that he wouldn’t be surprised at all if BTC falls to $10K. Robert Kiyosaki, author of Rich Dad Poor Dad suggested that BTC might bottom at $9K. Scott Minerd (Guggenheim Chief Investor Officer) said that BTC may fall to $8K.
What do you think about Jim Cramer’s prediction? Leave your comments below.
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