- Jim Cramer advises against investing in crypto and recommends gold instead.
- According to Cramer, charts indicate Bitcoin is a risky asset, not a safe investment.
- Cramer’s predictions have previously backfired on multiple occasions.
CNBC’s Jim Cramer advised against investing in cryptocurrencies on Monday, despite Bitcoin’s recent price rally this month. Cramer warned investors to avoid cryptocurrency investments and favored gold as a hedge against inflation or economic upheaval.
He cited an analysis from Carley Garner, senior commodities market strategist and broker at DeCarley Trading. Furthermore, while consenting to Garner’s views, Cramer stated:
The charts, as interpreted by Carley Garner, suggest you need to ignore the crypto cheerleaders now that bitcoin’s bouncing. And if you seriously want a real hedge against inflation or economic chaos, she says you should stick with gold. And I agree,
According to Garner, who analyzed the daily chart of Bitcoin futures and the tech-heavy Nasdaq-100 going back to March 2021, the two markets move practically in tandem. This means that Bitcoin is not a safe investment but rather a risky asset. Therefore, Cramer asserts gold is a better option than the most popular cryptocurrency in the world.
“Imagine business owners trying to conduct transactions with shares of Facebook or Google … it’s ridiculous, they’re too volatile. Bitcoin is no different,” he added.
Over the course of a few years, Cramer went from being a staunch advocate for the sector to a vocal critic. He was also frequently derided by the cryptocurrency community because many of his predictions have proven to be incorrect.
One such occasion was back in September 2021. During the Evergrande debt crisis in China which impacted the future performance of bitcoin significantly, Cramer advised investors to liquidate their holdings. Two months later, the price of bitcoin hit a record high of about $70,000.
On another instance in January last year, Cramer stated that the BTC correction could be over, implying that consumers should reconsider jumping on the bandwagon. However, bitcoin’s value plummeted by nearly 60% throughout the course of 2022.