Legendary stockbroker Jim Cramer is not well known in the cryptocurrency space. There are many who think that when Cramer was on the decline in Bitcoin (BTC) and altcoins, it signaled a “bullish”. For this reason, Cramer’s comments are often not taken seriously. However, since Cramer is the host of a financial program, he does not spare his Bitcoin comments. In his latest statements, the stockbroker said that instead of Bitcoin, gold should be looked at. Here are the details…
Bitcoin warning from Cramer
Despite the massive rise in Bitcoin this month, CNBC’s Jim Cramer warned on Monday not to enter the crypto space. Citing DeCarley Trading’s senior commodities market strategist and broker, Carley Garner, Cramer warned investors to stay away from cryptocurrencies and instead opt for gold as a hedge against inflation or economic chaos. Garner looked at the daily chart of Bitcoin futures and the tech-heavy Nasdaq-100 going back to March 2021 and stated that they were trading with almost the same pitch. This indicates that Bitcoin is more of a risk asset, not a store of value.
For this reason, Cramer sees the precious metal as a much better alternative compared to the world’s largest cryptocurrency. The TV presenter also highlighted the counterparty risks associated with the largest cryptocurrency in light of the FTX drama. Meanwhile cryptocoin.comAs we reported earlier, Bernstein recorded a sharp rise in “return on average,” an investment phenomenon observed in the Bitcoin space when prices tend to revert to their average prices due to prices that deviate too much from their typical value.
By this logic, Bitcoin is currently priced higher because the value of the cryptocurrency has dropped significantly since all-time highs in late December and January last year, creating an anomaly.
What is the latest situation in the cryptocurrency market?
Meanwhile, Bitcoin, the world’s most valuable cryptocurrency, is rising, reaching $23,333 for the first time since August 19th. Over the weekend, BTC broke the $23,000 mark for the first time in five months, making it exciting for the cryptocurrency market. Meanwhile, Ethereum, the second largest cryptocurrency, hit $1,664.78 for the first time since November 7, 2022. On the other hand, the reason for the uptrend can be attributed to institutional investors increasing their holdings in anticipation of the next bull run.
According to on-chain statistics, Bitcoin (BTC) price has increased recently, benefiting both short-term and long-term investors. It is also worth noting that the percentage of Bitcoin holders currently making short-term profits has risen to 97.5%, the highest level since November. Long-term BTC holders benefited from Bitcoin.
