Former hedge fund manager Jim Cramer, who has in the past said he directly owned Ethereum ($ETH) and told viewers to consider investing in Coinbase stock (NASDAQ: COIN) in August 2021, has said he sees the price of Bitcoin ($BTC) drop to $12,000 in the future.
Cramer, the host of CNBC show “Mad Money w/ Jim Cramer” and a co-anchor of CNBC’s “Squawk on the Street,” noted that cryptocurrency investors “have to take another stand” after cryptocurrency prices plunged and BTC dropped below its 2017 cycle high to reach a low under $18,000 before recovering.
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To Cramer, investors need to “say this is the level,” which is “typical of what happens when it’s about to really drop big.” Per Cramer, investors like MicroStrategy CEO Michael Saylor could be in danger as if “they change the margin rates on crypto he’d be out in a second.”
Investors, he said, have to hold onto their positions according to the former hedge fund manager, even though he sees the flagship cryptocurrency drop to the $12,000 mark “before this whole fiasco began.”
Per his words, crypto “really isn’t anything” and appeared to be tired of hearing about blockchain technology, the underlying technology behind cryptocurrencies like Bitcoin and Ethereum. Earlier this year, as CryptoGlobe reported, Cramer said that young people eyeing crypto are being “smart” as these assets “should be part of a person’s diversified portfolio.”
Cramer said at the time that “ever since crypto came along” he suggested investors should replace a 10% allocation to gold to invest 5% of their portfolios in gold and 5% in cryptoassets. Cramer reportedly bought BTC for the first time back in September 2020.
Earlier this year, Cramer revealed he believed BTC and ETH were close to bottoming out when they were trading at $36,600 and $2,400m based on analysis from veteran technician Tome DeMark.
As reported, Bitcoin whale activity has recently surged to a 4-month high as $BTC whales have started buying the flagship cryptocurrency’s dip as it approached the critical support at $20,000.
Fidelity’s Director of Global Macro Jurrien Timmer has recently said that Bitcoin’s “P/E” metric using the cryptocurrency’s price and network ratio, it’s back to levels last seen in 2017 and 2013, even though the cryptocurrency’s price is back to late 2020 levels.
Robert Kiyosaki, the highly successful author of the “Rich Dad Poor Dad” series of personal finance books, has pointed to Bitcoin’s crash as an opportunity for investors saying that “crashes are the best times to get rich.”
Kiyosaki suggested that BTC crashing was “great news” as he is “waiting for Bitcoin to crash to $20,000” so he can “back up the truck” when the bottom is in.
Featured image via Unsplash
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