Bitcoin, the flagship cryptocurrency, has recorded a massive rally in its value. This led market observers to once again wonder about the cryptocurrency's potential as a safe haven in the wake of high-profile U.S. bank failures.
However, Jim Cramer, host of CNBC's Mad Money, is not still convinced after repeatedly criticizing the crypto industry in the past.
In a recent episode of his popular show, Cramer expressed skepticism about Bitcoin's recent rally. When asked if he thought this rally was good for the largest cryptocurrency, Cramer replied, "No."
Cramer then went on to explain his reasoning behind his bearish stance on the bellwether coin. "I can argue it cannot be held in banks," he said, suggesting that Bitcoin's decentralized nature makes it difficult to regulate and control.
He also called Bitcoin a "strange animal," and stated that he believed it was being manipulated by Cindy Bank, a reference to the popular belief that large institutions and wealthy investors may be manipulating the cryptocurrency market."Please don't assume therefore that it is still not being manipulated," Cramer warned his audience.
Finally, Cramer offered his advice to anyone who may be invested in Bitcoin during this rally. "I would sell my Bitcoin right into this rally," he said. "Believe me, I had not been a believer one time in Bitcoin, not here, not now."
Bitcoin's value spiked to nearly $25,000 with a 20% increase since Friday's lows. This sudden rise was due to the assurance of US authorities that deposits at failed Silicon Valley and Signature banks would be protected, which led to a rally of crypto-related companies along with major cryptocurrencies. However, the collapse of these banks is expected to result in a significant slowdown of rate hikes by the Fed, with no more rate hikes now considered the most likely scenario.
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