Jim Cramer, the popular financial news columnist and host of Mad MoneyGram, has recently announced his decision to sell his bitcoins, despite the growing mistrust in banks and the traditional financial system.
Cramer discussed the recent bankruptcy of major US banks, Silicon Valley Bank (SVB) and Signature Bank, which further undermined people’s trust in the US Federal Reserve System (Fed).
This has prompted many investors to turn towards cryptocurrencies, leading to a surge in the value of bitcoin, which recently crossed the $26,000 mark.
However, Cramer has warned investors to be cautious, despite the growing interest in bitcoin.
Cramer described bitcoin as a peculiar asset and expressed his lack of faith in it, stating that he would sell it during the current rally.
According to him, bitcoin is being manipulated by Sam Bankman-Fried, the former CEO of the bankrupt crypto exchange FTX.
Cramer’s call to sell bitcoin was viewed by some investors as a buying opportunity, as the host is known for his frequent poor investment advice.
Moreover, fragments from the Mad Money program have surfaced on social media, where Cramer advised investors to buy shares in both SVB and Signature banks.
However, this week, US authorities halted Signature bank due to systemic risks, and the UK arm of the collapsed Silicon Valley Bank was acquired by HSBC for a mere one pound.
At the beginning of the year, Jim Cramer predicted that the cryptocurrency industry would experience a downturn in 2023, with a prevailing negative sentiment and poor industry performance.