Mad Money host Jim Cramer has predicted that the price of bitcoin will drop to $12,000. Nonetheless, he recommends bitcoin and ether for those looking to invest in crypto.
Jim Cramer’s bitcoin price prediction
Mad Money host Jim Cramer spoke on CNBC Friday about his future outlook for bitcoin. 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 will bounce back from current levels, or whether BTC will drop by 50% or more.
Sharing his bitcoin price prediction, he replied:
I think it goes up to $12,000, where it was before this whole fuss started.
“I think people involved with bitcoin will have to take another stand,” the Mad Money host insisted. “We need some people to just say, ‘Look this is the level.’ This is when it’s going to get really big.” He insisted, “They can’t let this get down to them anymore.”
Cramer on Margin Calls and Microstrategy
Cramer talked about Nasdaq-listed software company Microstrategy, which has accumulated 129,218 BTC on its balance sheet. Its CEO, Michael Sailor, is a bitcoin bull. He was recently speaking on CNBC that bitcoin is the best investment for his company and that at current levels it is a good time to buy BTC.
Microstrategy recently debunked rumors that Silvergate is facing a margin call for a bitcoin-backed loan from the bank and that some BTC will need to be liquidated. Sayer explained that the company has more bitcoin to pledge and other collateral to post for the loan.
However, Cramer said that if the lender changed the margin rates on crypto, the seller “would be out in a second.”
Bitcoin fell on Saturday morning, falling below $20K for the first time since 2020. At the time of writing, BTC is trading at $17,983, up 13% in the past 24 hours and almost 40% over the past seven days.
The Mad Money host tweeted on Saturday:
Ten percent is down for bitcoin and you get some nasty margin calls over the weekend… surprising no major institutions are pushing it.
He added in a follow-up tweet: “I wonder what rabbit Michael Sayer can take out of a hat with his Microstrategy gameplan. I wonder what he had in mind when he first raised the money.”
Earlier this month, Cramer offered some advice on cryptocurrency investing. He admitted that he owns Ethereum, adding: “I would never discourage you from buying crypto.” However, he added: “I would prefer whether you do it in Ethereum or Bitcoin, which has the biggest following.”
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.
Cramer is not alone in predicting a massive drop in the price of bitcoin. Billionaire fund manager Jeff Gundlach said this week that he would not be surprised at all if BTC drops to $10K. Rich Dad Poor Dad author Robert Kiyosaki hints that BTC could be bottoming out at $9K. Guggenheim Chief Investment Officer Scott Minrad said last month that BTC could drop to $8K.
What do you think of Jim Cramer’s prediction? Let us know in the comments section below.
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