The host of Mad Money, Jim Cramer, has predicted that bitcoin’s price will fall to $12,000. Nonetheless, he has recommended bitcoin and ether for people wanting to invest in crypto.
Jim Cramer’s Bitcoin Price Prediction
Jim Cramer, the host of Mad Money, talked about the future outlook for bitcoin on CNBC Friday. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.
He was asked whether he thinks bitcoin is going to bounce from the current level, or whether BTC will go down another 50% or more.
Sharing his bitcoin price prediction, he replied:
I think it goes to $12,000, where it was before this whole fiasco began.
“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 on Margin Calls and Microstrategy
Cramer proceeded to talk about Microstrategy, the Nasdaq-listed software company that has amassed 129,218 BTC on its balance sheet. Its CEO, Michael Saylor, is a bitcoin bull. He was recently on CNBC talking about bitcoin being the best investment for his company and it is a good time to buy BTC at the current level.
Microstrategy recently debunked the rumor that it is facing a margin call for a bitcoin-backed loan from Silvergate Bank and will need to liquidate some BTC. Saylor explained that the company has more bitcoin to pledge and other collateral to post for the loan.
However, Cramer said if the lender changed the margin rates on crypto, Saylor “would be out in a second.”
Bitcoin plummeted 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% over the past 24 hours and almost 40% over the last seven days.
The 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 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.”
Earlier this month, Cramer gave some advice on cryptocurrency investing. 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 is not the only one predicting a massive fall in the price of bitcoin. Billionaire fund manager Jeff Gundlach said this week that he wouldn’t 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 about Jim Cramer’s prediction? Let us know in the comments section below.
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Author: Kevin Helms