CNBC analyst Jim Cramer predicts that the price of Bitcoin (BTC) will drop to $12,000. Cramer is a former hedge fund manager who is also the co-founder of Thestreet.com, a news site with economic news. In the program, Cramer was asked in which direction Bitcoin could go from the current level.
"I think we have a more turbulent period ahead of us. Bitcoin goes to $12,000."
Cramer then made statements about the Nasdaq-listed software company Microstrategy, which has accumulated 129,218 BTC on its balance sheet. The company's CEO, Michael Saylor, remains optimistic despite the market crash. Saylor recently claimed on CNBC that Bitcoin is the best investment for his company and that buying the dip is a great opportunity.
Microstrategy recently denied rumors that it is facing a margin call for a Bitcoin-backed loan from Silvergate Bank and will need to liquidate some BTC. Saylor announced that the company will not sell Bitcoin and has other collateral for the loan. However, Cramer said Saylor would be "in a quandary" if lenders changed their crypto margin rates. Bitcoin fell again in the early hours of Saturday morning and fell below $20,000 for the first time since 2020. Crammer made the following statement:
"Bitcoin is down ten percent and you're getting margin calls over the weekend. It's surprising that there aren't any big institutions backing this. I wonder what rabbit Michael Saylor can pull out of the hat this time. Was he ready for such a scenario?"
Cramer offered some advice on investing in cryptocurrencies. The server, who admitted to investing in Ethereum, reiterated that he will never draw disaster scenarios for cryptocurrencies to people and that they can continue their investments. According to Cramer, the most reliable and sensible investment in the market are Bitcoin and Ethereum. However, in October last year, the economist used the phrase “Cryptocurrency investment is based on the Big Fool Theory.” Microsoft co-founder Bill Gates made a similar comment this week, emphasizing that cryptocurrencies are 100% based on the Stupid Theory and never invest.
Cramer isn't the only one who predicted a massive drop in Bitcoin price. Billionaire fund manager Jeff Gundlach said he wouldn't be at all surprised if BTC drops to $10,000 this week. Robert Kiyosaki, the author of the famous economics book "Rich Dad Poor Dad", stated that BTC can hit the bottom at $ 9,000. Guggenheim Chief Investment Officer Scott Minerd said last month that BTC could drop to $8,000.