After falling below $38,000 earlier this week, bitcoin has staged a mini-comeback, currently trading around $40,100. This flash of green has sparked contrasting views among market watchers, including CNBC's Jim Cramer, whose recent advice has drawn attention.
Cramer, known for his sometimes contrarian opinions, has taken a cautious stance on bitcoin's recent rally. While he acknowledged the positive momentum, he expressed concern about the cryptocurrency's ability to sustain this rise due to a possible lack of fresh capital entering the market.
It's time to go out?
Another day…. another chance to get out of bitcoin as the Number Go Up club tries to hold it at 40,000
-Jim Cramer (@jimcramer) January 25, 2024
When bitcoin fell more than 20% recently, Cramer said that even if the coin's price rose, there wouldn't be enough money coming in to support the rise.
This cautious outlook contrasts with Cramer's previous comment, where he briefly encouraged buying bitcoin when it fell near $38,000.
And it's no surprise that Cramer is advising bitcoin owners to sell their holdings, particularly in light of his recent erratic statements. This change of heart has left some questioning the consistency of his advice.
However, the market has reacted with curiosity to Cramer's recent pessimism. Some analysts believe that, ironically, his negative sentiment may have fueled the current price surge, with speculation that investors saw his criticism as a contrarian indicator and positioned accordingly.
btc slightly above the $40K level today. Chart: TradingView.com
Currently, the currency trade the price is $40,102, reflecting a 1.41% increase in value in the last 24 hours. Taking advantage of this rise, Cramer believes now is an ideal time for investors to strategically sell their assets, indicating that they are likely to realize additional gains before any potential decline.
With conflicting market signals and varying expert opinions, bitcoin investors face a complex landscape. Ultimately, the decision to “deploy” or hold your holdings depends on individual financial goals and risk tolerance.
Mixed Reactions to bitcoin Spot ETF Launch
Meanwhile, bitcoin's recent introduction of spot ETFs in the US has not received an overwhelmingly positive response. According to a Deutsche Bank survey of 2,000 retail investors in the US, UK and Europe, there is a notable sense of caution. About a third of respondents expect bitcoin to fall below $20,000 by the end of the year, reflecting a less optimistic outlook.
Interestingly, almost half of the investors surveyed even express the belief that bitcoin could disappear completely, indicating a possible lack of understanding about its technology and possibilities.
However, it is important to note that these sentiments are based on the opinions of retail investors and should not be considered definitive predictions.
Featured image from Pixabay, TradingView chart
