Jim Cramer, the host of CNBC's "Mad Money," has issued a stark warning about the future of Bitcoin (BTC) on the X social media network.
Cramer, known for his incisive financial commentary, pointed out the troubling start to the Bitcoin sell-off.
He noted, "Someone's probably going to try to make a stand here but as we said last night, you can't have an asset double in value by hundreds of billions of dollars in anticipation of an ETF and then almost no one shows up.”
In a recent episode of "Mad Money," Cramer said that Bitcoin might be "topping out," predicting a potential decline in its value.
On Jan. 12, he took to Twitter to reiterate his belief that Bitcoin had reached its peak.
This Cramer prediction ended up being accurate considering that the Bitcoin price slipped below the $41,000 mark on Thursday.
ETF launch: A sell-the-news event?
The conversion of the Grayscale Bitcoin Trust (GBTC) into a spot bitcoin ETF last week has led to substantial outflows, exceeding $1.5 billion.
JPMorgan analysts, led by Nikolaos Panigirtzoglou, have raised concerns about further outflows, potentially reaching $3 billion, which could exert more downward pressure on Bitcoin prices.
Economist and noted cryptocurrency skeptic Peter Schiff also weighed in, warning about the impact of new SEC regulations on Bitcoin's transaction costs and future price.
Mushumir Butt
Gamza Khanzadaev
Tomiwabold Olajide
