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Jim Cramer, a prominent CNBC host, has shared a bitcoin pessimistic view on the future performance of Bitcoin (BTC).
Unlikely that Bitcoin finds its footing— Jim Cramer (@jimcramer) January 22, 2024
The prominent stock picker believes that it is unlikely that the flagship cryptocurrency will be able to find its footing after coming close to plunging below the $40,000 level.
The main bearish factor
The introduction of Bitcoin ETFs, initially heralded as a gateway for mainstream investors to easily engage with Bitcoin, has coincided with a downturn in BTC’s market value.
This downturn starkly contrasts with the previously high expectations for Bitcoin’s price trajectory.
A significant factor influencing this outlook is Grayscale, a key player in the digital asset space.
Grayscale’s recent actions have raised eyebrows, particularly its deposit of 15,308 BTC ($623.8 million) to Coinbase Prime.
This move follows a trend since the approval of Bitcoin Exchange-Traded Funds (ETFs), with Grayscale depositing a total of 63,991 BTC ($2.68 billion) to Coinbase Prime.
JPMorgan analyst Nikolaos Panigirtzoglou has pointed out the potential for more bearishness due to profit-taking on GBTC.
However, such influential voices as Galaxy Digital CEO Mike Novogratz and SkyBridge founder Anthony Scaramucci.
Cramer’s prescient prediction
Cramer’s recent comments on Bitcoin have proven to be eerily prescient.
The CNBC “Mad Money” host had previously issued a stern warning about Bitcoin’s price prospects on the X social media network.
He argued that the asset’s rapid value increase in anticipation of the ETF, which was followed by a lackluster market response, was a red flag.
Cramer had suggested that Bitcoin might be “topping out” in a “Mad Money” episode.
This prediction turned out to be accurate, as Bitcoin’s price subsequently fell below the $41,000 mark.