Jim Cramer, the host of Mad Money, suggests that Bitcoin has reached its peak.

Graw Michael

CNBC’s Mad Money host, Jim Cramer, commented on Bitcoin’s current status, suggesting it may be reaching its peak. He emphasized the resilience of Bitcoin, calling it a technological marvel and asserting its permanence in the market. Cramer’s remarks came amid a surge in the crypto market, with Bitcoin exceeding $47,000 on Monday. This rise was fueled by increased optimism surrounding the potential approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).

bitcoin

During Monday’s Lightning Round on Mad Money, Jim Cramer expressed his belief that Bitcoin is reaching its peak. Cramer, a former hedge fund manager and co-founder of Thestreet.com, made this statement in response to a caller’s query about stocks like Riot Platforms (Nasdaq: RIOT) and Marathon Digital (Nasdaq: MARA), emphasizing, “If you’re after bitcoin, go for bitcoin. In my view, bitcoin seems to be peaking.”

Numerous investors are favoring the acquisition of stocks associated with cryptocurrencies or possessing substantial exposure to Bitcoin instead of directly purchasing the digital coins. Aside from Riot Platforms and Marathon Digital, popular options include Microstrategy (Nasdaq: MSTR) and Coinbase (Nasdaq: COIN).

The recent surge in Bitcoin, surpassing $47,000 on Monday, stems from mounting expectations of the U.S. Securities and Exchange Commission (SEC) granting approval for spot Bitcoin exchange-traded funds (ETFs). The securities regulator is anticipated to greenlight several applicants on Wednesday.

During the previous week, the Mad Money host highlighted Bitcoin’s resilience, emphasizing the inability to eradicate it. He noted the blindness of Charlie Munger, former right-hand man to Warren Buffett, towards Bitcoin and stressed its technological significance, asserting its enduring presence.

The “Cramer effect” has become a crypto-world meme, suggesting that Bitcoin often moves contrary to Cramer’s predictions. When he expresses bullish sentiments, a bearish trend might ensue, and vice versa. Following Cramer’s mention of Bitcoin topping out, some users expressed bullish optimism, foreseeing significant upward movement. Lawyer John Deaton even celebrated the news by purchasing more Bitcoin.

Cramer previously supported Bitcoin, initially advising a 5% portfolio allocation to BTC in March 2021. However, due to ransomware concerns and China’s mining crackdown, he divested his holdings. Although he later disclosed an investment in ether (ETH), he raised concerns about Binance, FTX, and Tether. By December 2022, he strongly urged investors to exit the crypto market, citing anticipated SEC actions against non-compliant crypto firms.