2021-6-22 17:13 |
CNBC’s Jim Cramer, who previously described bitcoin ownership as an alternative to a cash position, has sold most of his Bitcoin holdings due to his concerns around China's crackdown on crypto mining and trading.
This comes after he trimmed his position and paid off a home mortgage with its profits just over two months ago. Cramer said on Tuesday,
“Sold almost all of my bitcoin. Don’t need it.”
Cramer’s selling came when Bitcoin is down more than 52% from its all-time high of nearly $65,000 in April. The digital asset is currently hovering near its $30k support.
“When the PRC (People’s Republic of China) goes after something, they tend to have their way. … It’s not a democracy. It’s a dictatorship.”
“I think that they believe it’s a direct threat to the regime because what it is, is a system that’s outside their control.”
This ain't’ the first time, China is cracking down on the crypto market, it is actually going on since late 2013.
Cramer also has concerns about how the US government will approach Bitcoin in light of the Colonial Pipeline attack.
“I think the Justice Department and the FBI and the Federal Reserve and Treasury could coalesce and say, ‘OK guys, if you pay ransomware, we’re going to go after you.’”
And because of these two headwinds for the leading cryptocurrency, Cramer said,
“I’m saying that this is not going up because of structural reasons.”
Interestingly, “Mad Money” host who has built his career as a stock picker doesn’t beat the market.
According to a working paper published in 2016 by researchers from the Wharton School at the University of Pennsylvania, Cramer’s Action Alerts Plus portfolio has underperformed the S&P 500 index in terms of total cumulative returns since its 2001 inception.
The portfolio was down 9.5% in 2001 while S&P 500 was unmoved and in 2011, compared to S&P’s 11.4% increase, the portfolio only rose 1.3%. The research found the portfolio returned 64.5% cumulatively over 15 years versus 70% for the S&P 500.
So, if you were thinking of exiting the crypto market based on Cramer's action, you might want to reconsider it.
Bitcoin/USD BTCUSD 32,010.8812 -$473.76 -1.48% Volume 58.68 b Change -$473.76 Open$32,010.8812 Circulating 18.74 m Market Cap 599.9 b baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[scripts.length - 1]; var cccTheme = {"Chart": {"fillColor": "rgba(248,155,35,0.2)", "borderColor": "#F89B23"}}; (function () { var appName = encodeURIComponent(window.location.hostname); if (appName == "") { appName = "local"; } var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl + 'serve/v1/coin/chart?fsym=BTC&tsym=USD'; s.src = theUrl + (theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD"); The post CNBC’s Jim Cramer Sells Most of his Bitcoin, But Don’t Worry He Doesn’t Beat the Market first appeared on BitcoinExchangeGuide.Similar to Notcoin - TapSwap on Solana Airdrops In 2024
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