It’s Never Too Late To Sell Your Awful Position in Bitcoin (Jim Cramer)
Whatever your stance, Bitcoin and digital currencies aren’t going away.
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Jim Cramer makes a living talking about the stock market on CNBC.
He’s like Jekyll and Hyde when it comes to Bitcoin and has two very different sides to his personality, usually dictated by market fluctuations.
The former hedge fund manager and TV personality is telling everyone in Bitcoin that it’s never too late to get out of a bad investment.
Cramer was a massive beneficiary of buying Bitcoin at $12,000 following a podcast he was on with Famous Bitcoiner Anthony Pompliano.
Cramer saw his investment five X when Bitcoin climbed to $60,000.
He went live on air to say that he sold 50% of his holdings to pay off his mortgage.
Jim Cramer:
“It was like, phoney money paying for real money.
I now own a house — lock, stock, and barrel — because I bought this currency. I think I won!
From the chart, I may be the only natural seller, but it was so great to pay off a mortgage,”
The controversial stock market pundit didn’t go into how much he had made from selling his Bitcoin but was heard in other interviews saying it was around $500,000 — which, if true, would be an astounding $2 million profit.
You Should Own Bitcoin Because It’s a Good Hedge Against Fiat Currency.
During the height of the Bitcoin Bull market, its price reached an all-time high of $68,789.63
So Cramer’s timing in selling his Bitcoin was impeccable.
Cramer had been a vocal promoter of Bitcoin during the Bull market. He constantly touted the digital currency live on air, telling viewers that it would be irresponsible not to include it in their portfolio.
Jim Cramer:
“I own Bitcoin. It’s a good hedge.
Bitcoin is exciting, and it’s something we can talk about endlessly. There are promoters of it, but there seem to be only a few sellers.
In the end, you have to hedge on Bitcoin because if you buy Bitcoin and it goes down, you will consider buying more at a lower price.
Every business should take a small portion of their cash and put it into Bitcoin, as it’s a good hedge against fiat currency.”
It’s Not Too Late To Sell Your Bitcoin.
Cramer is now warning his viewers against staying in speculative assets.
He’s reiterated that while the fed continues to tighten the economy, there will be far more downward pressure on the price of digital assets, especially ones with inflated market caps.
Cramer is now saying you still have time to sell your Cryptocurrency holdings, especially if you are in an awful position.
Jim Cramer:
“You can’t just beat yourself up and say, ‘hey, it’s too late to sell.
The truth is, it’s never too late to sell an awful position, and that’s what you have if you own these so-called digital assets,”.
FTX, an American trading firm, famously collapsed from a $32 Billion company at its peak to zero overnight.
It’s now brought the entire crypto space under intense scrutiny as the digital asset market has seen $200 Billion wiped away overnight.
Below is the market cap of all Cryptocurrencies. You can see the sharp collapse soon after FTX crashed in early November.
Cramer believes that other digital currencies, outside of so-called blue chips, like Bitcoin and Ethereum, will be in trouble.
He now says he expects more pain for the marginal Cryptocurrencies, with some even going to zero.
He names XRP, dogecoin, Cardano and Polygon.
Jim Cramer:
“Tether, a so-called stablecoin that’s supposed to be kinda-sorta pegged to the dollar, still has a $65 billion market cap.
There’s still a whole industry of crypto boosters trying desperately to keep all of these things up in the air — not too different from what happened with bad stocks during the dot-com collapse.”
Cramer says that the entire cryptocurrency space, not just Bitcoin, reminds him of internet stock in 2000 when people were in denial, still buying the stock to sustain its price.
Investors were all wiped out.
He believes people are doing the same in crypto because they don’t want to see their entire life’s work disappear in front of their eyes.
Jim Cramer says he still needs to see people using Bitcoin for something useful besides kidnappers wanting it for ransom.
Jim Cramer:
“Bitcoin is just a risk asset.
Many companies thought they would be using Bitcoin now, but I need to find out if anyone is using it.
It reminds me of the stocks in 2000, around march, when the bulls were buying dead stocks trying to keep the stock prices up, and then ultimately, they got smashed.
So many people would not let this come down because it’s their entire life’s work.
People once again say this (Bitcoin) is a great asset, and we can’t let this go down.
People will try and manipulate Bitcoin’s price so it holds.
I can’t think of anyone using Bitcoin as a common currency except Kidnappers.
Oh, and the FED despise Bitcoin.”
Final Thoughts
Never have I come across a topic that divides opinion as much as Bitcoin does. Or have I seen expert commentators consistently switch narratives.
Jim Cramer doesn’t make money by sitting on the fence as a financial commentator.
He speaks his mind.
His toing and froing between thinking you should have Bitcoin as an investment vs not having it is confusing.
He made a lot of money and paid off his mortgage, short-term trading an asset he now believes people should sell.
No one knows what will happen in the short term, so I put Cramer’s successful Bitcoin exit near the top of the market down to a degree of luck.
Whatever your stance on Bitcoin and digital currency, it’s not going away.