In a recent segment of Mad Money, Jim Cramer was asked by a caller whether it’s better to invest in Bitcoin or shares of MicroStrategy, a company known for being the largest public holder of Bitcoin. Cramer’s response was clear: he owns Bitcoin and believes it is a great asset to hold.
According to Cramer, Bitcoin is an essential part of a diversified portfolio, making it a valuable addition for any investor. “It’s a great thing to have in your portfolio,” he remarked, underscoring his confidence in the world’s most well-known cryptocurrency.
While Cramer was firm in his support for owning Bitcoin, he also warned against investing in MicroStrategy’s shares as a way to gain exposure to Bitcoin. MicroStrategy, a business intelligence firm, holds over 471,000 BTC, making it the largest corporate Bitcoin holder. The company’s stock has often been closely tied to Bitcoin’s price movements due to its significant Bitcoin holdings.
However, Cramer’s advice was straightforward: don’t buy MicroStrategy stock if you want to invest in Bitcoin. Instead, he emphasized the importance of owning Bitcoin directly, suggesting that it’s a more direct and effective way to get exposure to the cryptocurrency’s potential growth.
“Own Bitcoin, not MicroStrategy,” Cramer stated, clearly distinguishing between direct ownership of the cryptocurrency and the indirect exposure provided by holding shares in the company.
Cramer’s latest comments have fueled a range of reactions from the cryptocurrency community. On one hand, many crypto supporters have praised him for publicly endorsing Bitcoin. His recommendation adds further credibility to the growing acceptance of Bitcoin in mainstream investment circles, especially as more traditional investors begin to recognize the asset’s role in a diversified portfolio.
On the other hand, Cramer’s endorsement has also raised some eyebrows, particularly because of his previous track record with Bitcoin. As many in the crypto world know, Cramer has a history of making predictions that often seem to go against market trends.
One example of this was in January 2024, when Cramer suggested that Bitcoin had reached its peak and recommended that investors sell their holdings. At that time, Bitcoin was priced at around $47,100. Since then, the cryptocurrency has surged dramatically, breaking the $100,000 mark, and is currently trading at $103,176 as of today. This has led some in the community to adopt what’s known as the “Inverse Cramer” theory, which posits that Cramer’s predictions tend to be wrong, and that when he makes a call, the market often moves in the opposite direction.
As a result, some Bitcoin investors are now speculating that, based on Cramer’s endorsement, Bitcoin might experience a sharp decline in the near future, although this remains speculative.
Despite the mixed reactions to Cramer’s endorsement, Bitcoin continues to show remarkable resilience. With a price increase of over 100% since Cramer’s January 2024 warning, Bitcoin has proved its staying power as a leading digital asset. Many analysts believe that Bitcoin’s fundamentals, including its scarcity and growing institutional adoption, will continue to drive its value upward.
At the time of writing, Bitcoin’s price is $103,176, reflecting a 4.88% increase over the past 24 hours. This surge is a clear indication of the ongoing investor confidence in the asset, despite the volatility and uncertainty that often surround cryptocurrencies.
Jim Cramer’s endorsement of Bitcoin adds another layer of credibility to the growing recognition of the cryptocurrency within mainstream financial markets. His advice to hold Bitcoin directly, rather than relying on stocks like MicroStrategy, highlights the importance of having direct exposure to the digital asset.
However, as with any investment, potential investors should consider the inherent volatility of the cryptocurrency market and approach Bitcoin as part of a well-rounded portfolio. While some might follow Cramer’s recommendation with confidence, others, influenced by the “Inverse Cramer” theory, may remain skeptical about the cryptocurrency’s future.
As Bitcoin continues to evolve, it remains to be seen whether Cramer’s endorsement will become a turning point in the broader acceptance of Bitcoin in traditional investment circles or if it will merely add fuel to the ongoing debate about the role of cryptocurrencies in today’s financial markets.
Get the latest Crypto & Blockchain News in your inbox.