Longtime CNBC anchor Jim Cramer has come up with a scathing critique of Bitcoin following a brutal weekend sell-off.
Despite being a self-proclaimed holder of the asset, Cramer argued that the violent price action over the last 48 hours is definitive proof that Bitcoin cannot function as a stable medium of exchange.
"The demonstration of what can happen in a weekend with bitcoin demonstrates its unreliability, on a short-term basis, to be a currency," Cramer wrote. "And I write that as someone who owns bitcoin."
The “sideshow”
In another social media post, Cramer urged investors to stop obsessing over the price swings of non-yielding assets and focus on corporate fundamentals. He drew a parallel between the crypto panic and the precious metals market.
"We fret when gold and silver skyrocket and we fret when gold and silver crash. Maybe we should just worry about earnings," Cramer stated. "I am not saying these are sideshows, nothing it is a sideshow, but not all events/prices/sudden movements are created equally..."
However, he noted that this specific crash might be targeted. With Michael Saylor’s Strategy (formerly MicroStrategy) set to report earnings this week, Cramer believes Wall Street bears are smelling blood.
"Saylor reports this week, Feb 5. So the shorts are probably trying to break him before that," Cramer warned. "The usual defenders will come on tv and tell a real good story. But it might not be enough because you can short against the converts."
The missing $82,000 bounce
Earlier, Cramer predicted that Bitcoin bulls would be able to defend the $77,000 level, making the cryptocurrency rally back to $82,000. However, this did not happen.
Following the Jan. 31 price crash, Cramer called out the silence of the industry's biggest bulls.
"Where are the usual Bitcoin defenders? I figure they have until Monday to get it back to $82,000 so they can claim double bottom and i say that as a long standing owner of bitcoin!!! Ahoy??"
He was genuinely surprised by the fact that the whales allowed such a critical technical breakdown to occur on low weekend volume.
"I am always surprised that those who have the most to lose by a falling bitcoin ($80,000 line in the sand) don't defend it over the weekend."
Alex Dovbnya
Arman Shirinyan
Denys Serhiichuk