Mad Money host Jim Cramer predicted bitcoin price to fall to $12,000. Nonetheless, he recommended bitcoin and ether for people looking to invest in crypto.
Jim Cramer’s Bitcoin Price Prediction
Mad Money host Jim Cramer spoke about bitcoin’s future prospects on CNBC on Friday. 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 rebound from the current level, or if BTC will drop by another 50% or more.
Sharing his bitcoin price prediction, he replied:
I think it goes up to $12,000, where it was before this whole fiasco started.
“I think people involved in bitcoin need to take another stance,” the Mad Money host pointed out. “We need guys to just say, ‘Look, this is the level. It’s typical of what happens when he’s about to really drop. He stressed, “They can’t let it go anymore.”
Cramer on margin calls and microstrategy
Cramer then talked about Microstrategy, the Nasdaq-listed software company that raised 129,218 BTC on its balance sheet. Its CEO, Michael Saylor, is a bitcoin bull. He was recently on CNBC talking about bitcoin as the best investment for his business and now 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 have to liquidate some of them BTC. Saylor explained that the company had more bitcoins to pledge and other collateral to post for the loan.
However, Cramer said that if the lender changed margin rates on crypto, Saylor would “be out in a second.”
Bitcoin fell 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 down almost 40% in the past seven days.
The Mad Money host tweeted on Saturday:
Ten percent less for bitcoin and you get some nasty margin calls over the weekend… Amazing there aren’t big institutions backing this.
He added in a follow-up tweet: “I wonder what rabbit Michael Saylor can pull out of a hat with his Microstrategy game plan. I wonder when he first raised money if he had that in mind.
Earlier this month, Cramer shared some advice on investing in cryptocurrency. He admitted that he owns Ethereum, adding, “I would never discourage you from buying crypto.” However, he said, “I’d rather you do it in ethereum or bitcoin, which have the most followers.”
In October last year, he said, “The whole investment case for crypto is built on the biggest fool theory.” Microsoft co-founder Bill Gates made a similar comment this week that cryptography is 100% based on the big fool theory, pointing out that he is not involved in it.
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 drops to $10,000. Rich Dad Poor Dad author Robert Kiyosaki reported that BTC could bottom out at $9,000. Guggenheim chief investment officer Scott Minerd said last month that BTC could drop to $8,000.
What do you think of Jim Cramer’s prediction? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.