After dipping below $38,000 earlier this week, Bitcoin has staged a mini-comeback, currently trading around $40,100. This flicker of green has ignited contrasting viewpoints from market watchers, including CNBC’s Jim Cramer, whose recent advice has raised eyebrows.
Cramer, known for his sometimes contrarian takes, has taken a cautious stance on Bitcoin’s recent rally. While acknowledging the positive momentum, he expressed concerns about the cryptocurrency’s ability to sustain this upward climb due to potential lack of fresh capital entering the market.
Time To Bug Out?
Another day…. another chance to roll out of bitcoin while the Number Go Up club tries to keep it at 40,000
— Jim Cramer (@jimcramer) January 25, 2024
When Bitcoin fell more than 20% recently, Cramer said that even if the price of the coin went up, there wouldn’t be enough money coming in to support the increase.
This cautious outlook stands in contrast to Cramer’s earlier commentary, where he briefly encouraged buying Bitcoin when it dipped near $38,000.
And it is hardly surprising that Cramer would advise Bitcoin owners to sell their holdings, particularly in light of his recent erratic statements. This shift in opinion has left some questioning the consistency of his advice.
However, the market has reacted curiously to Cramer’s recent pessimism. Some analysts believe his negative sentiment may have ironically fueled the current price surge, with speculation that investors saw his criticism as an opposing indicator and positioned themselves accordingly.
BTC slightly above the $40K level today. Chart: TradingView.com
Currently, the coin’s trading price is at $40,102, reflecting a 1.41% increase in value over the past 24 hours. Capitalizing on this increase, Cramer believes that now is an ideal moment for investors to strategically sell off their assets, indicating that they are likely to secure additional gains before any potential decline.
With conflicting market signals and diverse expert opinions, Bitcoin investors face a complex landscape. Ultimately, the decision to “roll out” or hold their holdings depends on individual financial goals and risk tolerance.
Mixed Reactions To Bitcoin Spot ETF Launch
Meanwhile, Bitcoin’s recent introduction of spot ETFs in the US hasn’t received an overwhelmingly positive response. According to a Deutsche Bank survey of 2,000 retail investors across the US, UK, and Europe, there’s a notable sense of caution. Approximately a third of respondents foresee Bitcoin dropping below $20,000 by year-end, reflecting a less optimistic outlook.
Interestingly, nearly half of the surveyed investors even express the belief that Bitcoin might entirely vanish, indicating a potential lack of understanding about its technology and possibilities.
However, it’s important to note that these sentiments are based on retail investors’ views and should not be considered definitive predictions.
Featured image from Pixabay, chart from TradingView