CNBC’s Cramer gets negative and bitcoin goes positive

bitcoin tumble

CNBC’s Cramer gets negative and bitcoin goes positive

Set up your BitMEX trading account in 30-seconds

 

Yesterday, CNBC Mad Money host Jim Cramer speculated that the tide may have turned against bitcoin.

CNBC's Jim Cramer

The influential market guru and former hedge fund manager is known for his sharp and often controversial opinions.

“I think the tide has turned against it,” Cramer said Tuesday on CNBC’s “Squawk on the Street“. “I’m not saying its time has passed but there is a notion that the sun seems to be setting.”

With bitcoin briefly dropping in value below $6,000 for the first time this year, Cramer had predicted in June 2018 that bitcoin could someday reach $1 million in value.

Now Cramer predicts $800-$1000

 

Could bitcoin hit $800?Last week, Cramer recently interviewed Udi Mokady, chairman and CEO of CyberArk, who pointed to some of the criminal activity around cryptocurrency. “This thing really has become like an outlaw currency,” Cramer added.

In his Squawk segment, he said, “We make get back to a level where it [bitcoin] actually is maybe $800-$1000.”

Industry leaders more positive

 

Some industry leaders are not so bearish on bitcoin in the medium to longer term.

Nicolas Gilot, Co-CEO of blockchain-powered gaming distribution platform Ultra said, “Cryptocurrencies have become increasingly popular in countries such as Venezuela, where the local economy is in turmoil and the currency is struggling. Bitcoin has now become a store of value, and many recognize it as digital gold instead of a payment system. As the lira’s crisis deepens, Turkey’s crumbling economy could also turn to bitcoin in its hour of need as it offers an alternative solution to hyperinflation and a collapsing currency.”

bitcoin market capBitcoin another cryptocurrency may still have a chance to help consumers in inflation-ridden economies find a safer store of value than fiat currency.

Oded Noam, Orbs’ Chief Architect, commented: “It is expected that when a currency is unstable, anyone who has savings will prefer to switch to safer assets. As we saw in the past few years with currencies in Nigeria and Venezuela, if Lira are riskier than other currencies, people will buy euros or dollars, and also bitcoin.

However, if the euros are kept in banks inside Turkey, the government can freeze or even forfeit these assets. Turks saw that happen in neighboring Cyprus just a few years ago. Bitcoin is seen as a safe haven from such action.”

The growing economic crisis in Turkey could force the government to manipulate interest rates according to Eiland Glover, Founder and CEO of Kowala. “New decentralized – and stable – cryptocurrencies are on the horizon. These will soon enter the marketplace as viable alternatives to government fiat. Before blockchain, the idea of burning money was not possible for those in control of the money supply. Price stabilizing mechanisms such as autonomous money supply control are much simpler and more effective than the current tools at Central Banks’ disposal.”

A wild ride ahead

 

cryptocurrency roller coasterIndustry leaders are by nature optimistic about their future and confident that great products and great businesses will survive and thrive even with the possibility of another dot-com type threat.

Coming back to Cramer’s cryptocurrency projections, the price of bitcoin had rebounded in early trading this morning to $6,576. Ninety-nine of the top 100 cryptocurrencies listed on Coinmarketcap.com were up from 8% to 27%-plus.

Cramer may have served as the perfect foil for the rebound or simply changed horses too soon.

Eyes on the cryptocurrency market.

Jim Cramer pic courtesy CNBC