Bitcoin loses ground — what analyst Jim Cramer thinks
Well-known TV host and investment analyst Jim Cramer has expressed concern about the sharp drop in the bitcoin price to $74,000 over the weekend. According to Cramer, this calls into question the sustainability of the cryptocurrency as an investment asset and a means of payment in the short term.
The drop in the bitcoin price has been part of a larger trend in the cryptocurrency market observed since the beginning of 2022. Against the backdrop of the Federal Reserve's tightening monetary policy and geopolitical tensions, the largest digital currency has lost more than 50% of its value from the historic high reached in November 2021.
Cramer, the host of the "Mad Money" TV show on CNBC, is known for his controversial statements about cryptocurrencies. He has previously stated that bitcoin is not the best capital preservation asset, especially in a highly volatile market. Now, he openly questions the prospects for further growth of the cryptocurrency.
Expert opinion: The drop in the bitcoin price to $74,000, of course, looks dramatic against the backdrop of its historic highs. However, in my opinion, Cramer exaggerates the "unreliability" of bitcoin as an asset. Cryptocurrencies remain a high-risk but promising investment instrument, especially in the long term. Hasty conclusions about the collapse of bitcoin seem premature to me. Investors should diversify their portfolios and not rely solely on cryptocurrencies, but it would also be a mistake to write them off.