Jim Cramer, a prominent CNBC anchor, has shared a pessimistic view on the future performance of Bitcoin (BTC).
Jim Cramer, a prominent CNBC anchor, has shared a pessimistic view on the future performance of Bitcoin (BTC).
The prominent stock picker believes it is unlikely that the flagship cryptocurrency will be able to find its footing after nearly falling below the $40,000 level.
The main bearish factor
The introduction of Bitcoin ETFs, initially billed as a gateway for mainstream investors to easily engage with Bitcoin, has coincided with a drop in BTC’s market value.
This slowdown is in stark contrast to previously high expectations for Bitcoin’s price trajectory.
A major factor influencing this outlook is grayscale, a key player in the digital asset space.
Grayscale’s recent actions have drawn attention, particularly its deposit of 15,308 BTC ($623.8 million) on 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) on Coinbase Prime.
JPMorgan analyst Nikolaos Panigirtzoglou has flagged the possibility of further downtrend due to profit-taking in GBTC.
However, such influential voices as Galaxy Digital CEO Mike Novogratz and SkyBridge founder Anthony Scaramucci.
Cramer’s prophetic 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 outlook on social network X.
He argued that the rapid rise in asset value in anticipation of the ETF, followed by a lackluster market response, was a red flag.
Cramer had suggested that Bitcoin might be “peaking” on an episode of “Mad Money.”
This prediction turned out to be accurate, as the price of Bitcoin subsequently fell below the $41,000 mark.