Cramer Flips on Bitcoin as Price Surges Past $79,000
Jim Cramer's opinion on Bitcoin has changed dramatically in recent weeks. On his 'Mad Money' show, he told a caller to buy Bitcoin directly rather than invest in Bitmine Immersion Technologies (BMNR), which he deemed 'too dangerous'. This recommendation comes after Cramer previously planned to sell his own Bitcoin holdings due to concerns about quantum computing threatening the cryptocurrency's security.
The price of Bitcoin has surged past $79,000, extending a rally that began on August 19. The cryptocurrency gained nearly 9% in 24 hours and approximately 19% over the past week. Institutional demand accelerated alongside the price move, with U.S. spot Bitcoin ETFs recording net inflows of around $606 million on August 20.
The rally was fueled by forced short covering, with nearly $3 billion in positions liquidated as Bitcoin crossed $70,000. Short covering provides temporary buying pressure, but continued ETF and spot demand will determine whether Bitcoin can establish lasting support above $70,000.