Jim Cramer bought bitcoin
The famous host of Mad Money, a CNBC TV show, Jim Cramer has claimed to have bought bitcoin.
He did so during an interview with TheStreet, which aired live on 11 December.
Cramer stated that he had purchased bitcoin at $17,000, which he believes is a good purchase price.
He had announced earlier that day on Twitter that he intended to buy bitcoin, probably to take advantage of the price drop between 8 and 11 December, and the purchase at $17,000 has so far proved to be a good one, as the price has risen above $18,000 since the following day.
Although Cramer has been by Bitcoin Rush very sceptical about bitcoin in the past, he has changed his opinion in recent months, thanks in part to the suggestions of Anthony Pompliano.
During the interview he also stated that he will continue to buy, particularly when the price drops, as he usually does.
Why Jim Cramer bought Bitcoin
The reason that prompted him to buy bitcoin is diversification, as Cramer already owns gold, but he still revealed that the position he opened on BTC is not „big.“
In other words, he decided to add a small exposure in BTC to his diversified portfolio, in addition to his presumably larger exposure in gold.
Cramer also stated that he believes it is possible that the price of bitcoin could still fall, and that he bought it because it has fallen appreciably from the highs. At this point, given that he seems intent on investing 1% of his assets in BTC, it’s safe to assume that he might buy more, should the price send down again.
The year 2020 marked a sort of „conversion“ on the part of many traders in traditional finance in terms of their opinion of Bitcoin.
Until last year, many financial players were very sceptical about the future value of the world’s largest cryptocurrency, but perhaps thanks to the reaction of bitcoin’s price to the collapse of global financial markets in March, they have changed their minds. The rest was done by the return to all-time highs, which definitively proved that 2017 was not a bubble that burst due to a lack of adequate fundamentals.