As the price of bitcoin surged to 21-month highs Monday, “Mad Money” anchor Jim Cramer abruptly changed his perspective on digital assets, hailing it as an innovative and profitable investment.
Cramer said during his interview on CNBC that the recovery was impressive and had taken many by surprise, with the exception of those optimistic investors who proved to be right in their forecasts.
“This was a remarkable comeback that was unexpected, except for all the bulls who turned out to be right,” the former hedge fund manager said during the interview.
Jim Cramer Says You Can’t Kill Bitcoin
Cramer declared Bitcoin a powerful force, emphatically stating “This thing, you can’t kill it.” He further lauded it as a “technological marvel” deserving of recognition as a permanent fixture in the landscape. This marked a significant shift from his past skepticism, even prompting him to call the late Charlie Munger, a noted Bitcoin critic, “blind to this.”
JIM CRAMER CAPITULATES
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You can’t KILL Bitcoin. It’s here to stay.#Bitcoin pic.twitter.com/DQ6dlj0kDf
— Swan Media (@Swan) January 2, 2024
Historically, Cramer has taken a pessimistic view on cryptocurrency investing, shunning the asset class in the wake of the 2022 bear market collapse. But recently, there has been a shift in his advice to viewers regarding bitcoin, marked by a greater enthusiasm for the cryptocurrency.
Additionally, Cramer’s words contrast with those he made in early October during the Sam Bankman-Fried trial, when he stated that he was not interested in owning the cryptocurrency because he believed “Mr Bitcoin is ready to fall down big.” Previous to that, Cramer said that following China’s mining crackdown in 2021, he had sold the majority of his bitcoin assets.
After Bitcoin surpassed $38,000 in November, Cramer’s tone started to shift. This also prompted some to expect a following decline because they believed that nothing Cramer predicted would actually occur.
Bitcoin Hits $45K
The most valuable cryptocurrency by market capitalization, as of January 1, reached $45,000 for the first time since April 2022, according to Cramer’s most recent remarks. After the previous market drop, which he nicknamed “Crypto Monday,” Cramer noticed a rising lack of optimism toward cryptocurrencies in Silicon Valley in June of the same year.
Granted, Jim Cramer refrained from being an outspoken supporter of bitcoin during the interview, stating that not all investors are in it for the long run and speculating that the approval of the spot ETF could be a “sell the news” moment.
Although Cramer’s shift in opinion may result in a rise in the use of bitcoin, cryptocurrency investors are quick to point out that his enthusiasm frequently precedes unfavorable financial performance—a phenomenon known as the “reverse Cramer” effect.
For the first time since early April 2022, Bitcoin surged beyond $45,000 over night as rumors spread that the US Securities and Exchange Commission (SEC) could approve several spot bitcoin ETFs this week. The agency must make decisions on multiple ETF applicants by January 10th.
Featured image from Shutterstock
