Prominent CNBC host Jim Cramer recently issued a stern warning about the trajectory of Bitcoin, insinuating that the digital currency is on the brink of a significant downturn.
"A lot of the people who watch us are searching for ways not to lose money but to make money. I can't go out with gold cause gold is not good. I can't go out with Bitcoin because...Mr. Bitcoin is about to go down big," he said.
Paul Tudor Jones remains bullish
Cramer's comments came in response to billionaire investor Paul Tudor Jones expressing his confidence in Bitcoin during a Tuesday appearance on CNBC's "Squawk Box."
Despite growing concerns over looming Federal Reserve rate hikes and increased geopolitical unrest, Jones maintains that Bitcoin, alongside gold, continues to be a reliable hedge.
Bitcoin (BTC) is currently trading at $27,340 after a 0.8% gain over the last 24 hours. The leading cryptocurrency experienced fluctuations within the day, seeing its price oscillate between a 24-hour low of $27,296 and a high of $27,726. The flagship cryptocurrency is up 65% on a year-to-date basis.
Betting against Cramer
Jim Cramer's recent bearish outlook on Bitcoin hasn't gone unnoticed, especially among cryptocurrency enthusiasts.
Peter Smith, the CEO of Blockchain.com, humorously hinted at a potential "Uptober" following Cramer's bearish prediction. Another user, @btc_dan, went as far as to suggest that Cramer's recent comment effectively confirms a new Bitcoin bull market.
The analyst's questionable track record has led to an "Inverse Cramer ETF," which allows investors to bet against Cramer's stock picks. Launched by Matthew Tuttle, CEO of Tuttle Capital Management, this ETF would reflect a larger sentiment among certain traders that taking a contrarian view to Cramer's predictions might prove profitable. The ETF was shut down in August.
Dan Burgin
Arman Shirinyan
