The CNBC host appears to be backtracking on his enthusiasm for crypto.
CNBC host Jim Cramer has revealed that he has sold “almost all” of his Bitcoin holdings — declaring: “Don’t need it.”
The eccentric host said there have been several concerning developments that affect the appeal of the world’s biggest cryptocurrency.
He warned that China sees Bitcoin as “a direct threat” to its regime because of how it is a system that lies out of their control — and that this will have been the driving force behind Beijing’s recent regulatory crackdown.
Cramer also reflected on the recent ransomware attack involving the Colonial Pipeline, which disrupted gas supplies in parts of the U.S. Some $5 million in Bitcoin was paid to hackers, with law enforcement later retrieving $2.3 million of it.
He suggested that the Justice Department and the FBI, alongside the Federal Reserve and the Treasury, may start to clamp down on companies that pay these ransoms — amid concerns that it emboldens cybercriminals to stage further attacks in the future.
No Longer a Fan?
Cramer initially bought into Bitcoin when it was priced at $12,000 — and two months ago, revealed that he had sold half of his investment, paying off a mortgage in the process.
His declaration came around the time that Bitcoin hit all-time highs of $64,863.10 — and prices have fallen by more than 50% since then. At the time, Cramer said:
“It was like, kind of, phony money paying for real money […] I now own a house — lock, stock and barrel — because I bought this currency.”
All of this uncertainty raises questions as to whether Bitcoin is now in a bear market, and whether a fall below $30,000 may now be likely.