Mad Money's Jim Cramer Expects Bitcoin to Drop to $12,000

Mad Money’s Jim Cramer Expects Bitcoin To Drop To $12,000 – Bitcoin News

Mad Money host Jim Cramer predicted that the bitcoin price would drop to $12,000. However, he recommended bitcoin and ether for those who want to invest in crypto.

Jim Cramer’s Bitcoin Price Prediction

Mad Money host Jim Cramer spoke on CNBC on Friday about the future outlook for bitcoin. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy site.

He was asked if he thinks Bitcoin will bounce off the current level or if he thinks BTC will drop 50% or more.

He replied by sharing his Bitcoin price prediction:

I think it goes to $12,000 before this whole fiasco starts.

“I think people related to Bitcoin need to take another stance,” said the Mad Money host. “We just need some guys to say, ‘Look, that’s the level’. That’s typical of what happens when you’re about to go really big.” “They can’t let it go down anymore,” he stressed.

Cramer on Margin Calls and Microstrategy

Cramer continued to talk about the Nasdaq-listed software company Microstrategy, which has accumulated 129,218 BTC on its balance sheet. Its CEO, Michael Saylor, is a bitcoin bull. He was talking on CNBC recently that bitcoin is the best investment for his company, and at the current level, it’s a good time to buy BTC.

Microstrategy recently debunked a rumor that it is facing a margin call for a bitcoin-backed loan from Silvergate Bank and will need to liquidate some BTC. Saylor explained that the company has more bitcoins to pledge and other collateral to send for loans.

However, Cramer said Saylor would be “out in a second” if the lender changed their crypto margin rates.

Bitcoin crashed early on Saturday morning and fell below $20,000 for the first time since 2020. At the time of writing, BTC is trading at $17,983, down 13% in the last 24 hours and almost 40% in the last seven days.

The Mad Money host tweeted on Saturday:

It’s down ten percent for Bitcoin and you’re getting some nasty margin calls over the weekend… It’s surprising that there aren’t any big institutions backing it.

He added in a tweet that followed: “I wonder which bunny Michael Saylor could pull out of the hat with his Microstrategy game plan. I wonder if that’s what he had in mind, when did he first raise money.”

Earlier this month, Cramer offered some advice on cryptocurrency investing. He admitted to owning Ethereum and added: “I would never discourage you from buying crypto.” However, he said, “I would prefer you do this with ethereum or bitcoin, which have the most followers.”

“The whole investment case for crypto is based on the Big Fool Theory,” he said in October last year. Microsoft co-founder Bill Gates made a similar comment this week, emphasizing that cryptocurrency is 100% based on the Big Idiot Theory and is not included.

Cramer isn’t the only one who predicted a massive drop in Bitcoin price. Billionaire fund manager Jeff Gundlach said he wouldn’t be at all surprised if BTC drops to $10,000 this week. Rich Dad Poor Dad author Robert Kiyosaki stated 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.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been a herald ever since. His areas of interest are Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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