Mad Money host Jim Cramer predicts bitcoin prices will fall to $12,000. Nevertheless, he recommends Bitcoin and Ether for those who want to invest in crypto.
Jim Cramer’s Bitcoin price prediction
Mad Money host Jim Cramer discussed his future outlook for bitcoin on CNBC on Friday.
He also discussed the earthquake, the nuclear disaster,
and the nuclear crisis in the United States.
Sharing his Bitcoin price prediction, he replied.
I think it will be $12,000 before this whole mess starts.
“I think the ? I’m trying to get a good idea of what it’s going to cost. We need someone to say, “Look, this is the level.” That’s typical of what happens when you try to make a really big drop.” He emphasized, “They can’t let it go any lower.”
About Margin Calls and Microstrategies Cramer proceeded to talk about Microstrategies, a NASDAQ-listed software company that has accumulated a balance of 129,218 BTC on its balance sheet. Its CEO, Michael Saylor, is a bitcoin powerhouse. He recently told CNBC that bitcoin is the best investment for his company and that it is a good time to buy BTC at current levels.
MicroStrategy recently denied rumors that it was facing a margin call on its bitcoin-backed loans from Silvergate Bank and needed to liquidate some BTC. Saylor explained that the company has more bitcoin and other collateral to pledge for loans.
However, Cramer said that if the lender changed the crypto margin rate, Saylor “would be out in an instant.” He stated.
Bitcoin plunged early Saturday morning, falling below $20K for the first time since 2020. At the time of writing BTC was trading at $17,983, down 13% in the past 24 hours and nearly 40% in the past seven days.
The Mad Money host tweeted on Saturday.
A 10% drop in Bitcoin would trigger a nasty margin call over the weekend… Surprised there are no big institutions supporting this.
He added in a follow-up tweet.” I wonder what rabbit Michael Saylor can pull out of the hat with his Microstrategy game plan. I wonder if he had this in mind when he first raised the funds.”
Earlier this month, Kramer offered some advice on cryptocurrency investing. He admitted to owning Ethereum, adding, ” I would not discourage you from buying crypto.” However, he said, ” I suggest you do it with Ethereum or Bitcoin, where you have the biggest following.”
Last October, he said.” The whole investment case for crypto rests on the Greater Fool theory.” Microsoft co-founder Bill Gates made similar comments this week that crypto is 100% based on Greater Fool Theory, emphasizing that he is not involved in it.
Cramer is not the only one predicting a significant drop in Bitcoin’s price. Billionaire fund manager Jeff Gundlach said this week that he would not be at all surprised to see BTC fall to $10 BTC will fall to $10K, which would be a significant drop from its previous price of $20K. Robert Kiyosaki, author of Rich Dad, Poor Dad, noted that BTC could bottom out; BTCcould bottom out at $9K. Scott Minard, Guggenheim’s chief investment officer, said last month that BTC could fall to $8K.
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