Jim Cramer Adopts A New View On Bitcoin: “You Can’t Kill It” Amid Price Surge

As the price of bitcoin surged to 21-month highs Monday, “Mad Money” anchor Jim Cramer abruptly changed his perspective on digital assets, hailing it as an innovative and profitable investment.

The Unexpected Turnaround:
Cramer, known for his historical skepticism towards cryptocurrency, expressed during his recent CNBC interview that the impressive recovery of Bitcoin had taken many by surprise, except for the bullish investors who proved their forecasts right. He declared Bitcoin a powerful force, emphatically stating, “This thing, you can’t kill it.” This marked a significant shift from his past skepticism and even led him to label the late Charlie Munger, a noted Bitcoin critic, as “blind to this.”

Cramer’s Historical Pessimism:
Historically, Cramer has taken a pessimistic view on cryptocurrency investing, especially after the 2022 bear market collapse. He had shunned the asset class and, at one point, sold the majority of his bitcoin assets following China’s mining crackdown in 2021.

The Changing Tone:
After Bitcoin surpassed $38,000 in November, Cramer’s tone started to shift. However, some skeptics expected a subsequent decline, anticipating that Cramer’s predictions would not materialize. Nevertheless, the most valuable cryptocurrency reached $45,000 for the first time since April 2022, as per Cramer’s recent remarks.

Cramer’s Cautious Optimism:
While Cramer refrained from being an outright supporter of bitcoin during the interview, he did acknowledge that not all investors are in it for the long run. He also speculated that the approval of the spot ETF could be a “sell the news” moment.

Investor Caution:
Cryptocurrency investors are quick to point out that Cramer’s enthusiasm has, in the past, preceded unfavorable financial performance—a phenomenon known as the “reverse Cramer” effect. It remains to be seen whether this shift in opinion will lead to a sustained rise in the use of bitcoin.

Market Speculation:
For the first time since early April 2022, Bitcoin surged beyond $45,000 overnight amid rumors that the US Securities and Exchange Commission (SEC) could approve several spot bitcoin ETFs this week. The agency must make decisions on multiple ETF applicants by January 10th.

Jim Cramer’s unexpected change in perspective on Bitcoin reflects the dynamic and unpredictable nature of the cryptocurrency market. Whether this shift marks a turning point or aligns with the “reverse Cramer” effect, only time will tell. As the crypto community watches for further developments, the surge in Bitcoin’s price and Cramer’s acknowledgment of its resilience have undoubtedly sparked renewed interest and debate in the evolving landscape of digital assets.

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