Mad Money host Jim Cramer has predicted that the price of Bitcoin will fall to $12,000. Nonetheless, he has recommended Bitcoin and Ether for people looking to invest in crypto.
Jim Cramer’s Bitcoin Price Prediction
Mad Money host Jim Cramer spoke on CNBC on Friday about the future prospects for Bitcoin. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.
He was asked if he thinks Bitcoin will bounce off current levels or if BTC will fall another 50% or more.
He shared his bitcoin price prediction and replied:
I think it’s going to $12,000 where it was before this whole fiasco started.
“I think the people involved with bitcoin need to take a different point of view,” the Mad Money moderator stressed. “We need some people to just say, ‘Look, this is the level.’ That’s typical of what happens when it’s about to get really big.” He emphasized, “You can’t let it go down anymore.”
Cramer on margin calls and microstrategy
Cramer went on 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 and talked about Bitcoin being the best investment for his business and it’s a good time to buy BTC at current levels.
Microstrategy recently debunked the rumor that it is facing a margin call on a Bitcoin-backed loan from Silvergate Bank and has to liquidate some BTC. Saylor explained that the company had more bitcoin to pledge and other collateral for the loan.
However, Cramer said if the lender changed margin rates on crypto, Saylor would be “out in a second.”
Bitcoin plummeted early Saturday morning, falling below $20,000 for the first time since 2020. At the time of writing, BTC is trading at $17,983, down 13% in the past 24 hours and almost 40% in the past seven days.
The Mad Money host tweeted on Saturday:
Ten percent down for bitcoin and you get some nasty margin calls over the weekend… Amazing that there aren’t any major institutions backing this.
He added in a follow-up tweet, “I wonder what rabbit Michael Saylor can pull out of his hat with his microstrategy game plan. I wonder if that’s what he had in mind when he first started raising money.”
Earlier this month, Cramer shared some advice on investing in cryptocurrencies. He admitted that he owns Ethereum, adding, “I would never discourage you from buying crypto.” However, he said, “I would prefer it if you did it in Ethereum or Bitcoin, which has the largest following.” to have.”
In October of last year, he said, “The entire 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 was not involved.
Cramer is not alone in predicting a massive drop in Bitcoin price. Billionaire fund manager Jeff Gundlach said this week that he wouldn’t be at all surprised if BTC dropped to $10,000. Rich Dad Poor Dad author Robert Kiyosaki hinted that BTC could bottom at $9,000. Scott Minerd, Guggenheim’s Chief Investment Officer, said last month that BTC could fall to $8,000.
What do you think of Jim Cramer’s prediction? Let us know in the comment section below.
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