Jim Cramer, the host of Mad Money on CNBC, has said that he would buy more bitcoin (BTC) again when it goes under $20,000. The host of the CNBC show even compared the crypto market to that of an erratic stock, except that it trades for 24/7. Cramer reportedly purchased his first Bitcoin in mid-December when the price of the cryptocurrency was just around $17,000.
Jim Cramer Says He Will Buy More Bitcoin Under $20,000
In an interview with TheStreet, Jim Cramer said that he still believes in Bitcoin despite a $10,000 price correction over the past three days. However, he did say that he was unlikely to buy more of the cryptocurrency unless the price goes under $20,000, saying:
“My goal was to get my cash out so I don’t have to think about it. If it goes back under $20,000, I’m a buyer again. But I got my cost out, and I’m playing with the house’s money. This is no different than an entirely erratic stock.”
In an era of scarcity where people fear inflation and government bonds, Bitcoin suddenly comes as an allure. The former hedge fund manager added that he views Bitcoin and gold as insurance against inflation. Although, according to him, insurance is not something that makes a lot of money, such as Bitcoin.
Modeling Bitcoin Value With Scarcity
Cramer further adds that people don’t believe in fiat currency anymore due to its unlimited printing. But, in the case of Bitcoin, the cryptocurrency is not printing out any more of Bitcoin. This makes it more valuable in the same way as gold’s scarcity.
He added on his Bitcoin buying strategies:
“I am not going to look at bitcoin again. I’m fine with bitcoin until it comes all the way back to where I bought it and then I will refigure, maybe buy it again.”
The price of Bitcoin has fallen to more than 21%, since exceeding its all-time high of $42,000 last week. It is currently trading at 35,137 at the time of publication. This comes as the cryptocurrency’s worst slide since March of 2020.