Jim Cramer, the host of popular financial markets CNBC show Mad Money recently revealed that he bought Bitcoin when it went below $18k. He revealed this move in a recent interview with TheStreet, a magazine reporting on Business and Finance.
Jim Cramer Goes Bullish on Bitcoin
Jim Cramer is a big influencer in the financial markets due to the considerable following of his successful Mad Money show on CNBC. In his interview with TheStreet publication, Cramer revealed that he purchased the cryptocurrency when it went below $18k on Friday. He also revealed that he plans to buy more in the future when the price drops again.
I will buy — like I usually do — as something comes down,” said Cramer. “I’ll get bigger and bigger and bigger. I just think that you want to diversify into all sorts of asset classes. I have gold. I’m going to diversify into some Bitcoin — not a big position for me — but it’s certainly important to be diversified, and Bitcoin is an asset and I want to have a balance of assets.”
He also tweeted this when it was going down:
i think i will buy some https://t.co/RjcBFQLCcg
— Jim Cramer (@jimcramer) December 11, 2020
Cramer is clearly diversifying his assets with Bitcoin because for many in the financial markets, the key is diversification and risk mitigation. The risks rise significantly if one is dependent on one asset alone and that is why the diversification strategy carries less risk for investors. Cramer believes that Bitcoin will dip again because of its volatile nature but he believes that its potential is good for the future.
From a Critic to an Investor
Cramer was infamously a big critic of Bitcoin back during its 2017 bull run and predicted that the cryptocurrency will “run out of steam”. However, his attitude towards the crypto has changed dramatically over the years and recently back in September, he revealed that he is open to investing 1% of his total assets in Bitcoin. Now 1% is not a lot but that is still $1 million based on his overall reported worth of $100 million. He might be a happy man now that his invested asset has rose around 8% since he bought it. However, he, like many of his conventional investors see Bitcoin as a very volatile investment and may take a cautious approach going forward with it.
Jim Cramer is among many former Bitcoin critics and skeptics who have gone on to invest in the cryptocurrency. Not just individuals but financial organizations like investment funds, insurance companies and social security funds are now investing a lot of money into Bitcoin. These moves are shedding the image of the cryptocurrency as a niche currency for a small market only and as a result, big price movements even above its all-time high position are expected in the near future by market analysts.
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