Bitcoin has gained as much as 37% since Jim Cramer told CNBC viewers on August 3 that he was selling his bitcoin position due to quantum computing risks. The cryptocurrency traded near $63,764 on that date and subsequently added $475 billion in market capitalization over the following 49 days.
Cramer's Quantum Concern
Cramer's decision followed an interview with IBM Chairman and CEO Arvind Krishna on July 30. When asked whether quantum computers could eventually crack the cryptography protecting bitcoin, Krishna responded that investors should "give yourself three or four years, and at that point, I would get rather paranoid about it." Cramer subsequently announced he would exit his entire bitcoin position rather than sell only a portion.
The Price Movement
Bitcoin closed at $63,520 on August 3. The cryptocurrency reached an intraday high of $87,395, representing a 37.6% gain from that closing price. Even as prices retreated to around $85,500 in subsequent trading, the rally remained near 35% from Cramer's sell call. The surge coincided with over $1 billion in liquidations across crypto derivatives on September 21, with short positions accounting for roughly $850 million of those liquidations.
A Pattern of Bearish Calls
This was not Cramer's only bearish call on cryptocurrency during the summer. On June 10, he posted on X that "Bitcoin and gold–bad money, being liquidated for SpaceX." Bitcoin closed that day at $61,511 and has since risen roughly 40%. Cramer has made other bearish calls on bitcoin in previous years, including calling it "monopoly money" in December 2017 and warning of a "nasty" selloff after spot bitcoin exchange-traded funds launched in January 2024.
The Quantum Timeline Remains
While bitcoin's price gain has settled this particular trade, the underlying argument persists. Arvind Krishna's three to four-year window for quantum computing risks points to approximately 2029 or 2030, a timeline that has not changed due to recent price movements. Holders concerned about quantum threats still have time to evaluate potential upgrades and custody solutions.
The recent rally has coincided with other market factors, including forced short covering and a return of risk appetite as oil prices and Treasury yields eased.
