Jim Cramer Makes a U-Turn, Now Advises Investors to “Own Bitcoin”

During a recent episode of Mad Money, Cramer was clear in his recommendation. “If you want to own Bitcoin, own Bitcoin,” he asserted

CNBC’s Jim Cramer doubled down on his recent endorsement of Bitcoin, suggesting that investors seeking exposure to the cryptocurrency should own it directly rather than through operating companies like MicroStrategy.

During a recent Mad Money segment, Cramer stated that while MicroStrategy is a large corporate holder of Bitcoin, its stock is influenced by various factors beyond the cryptocurrency’s price oscillations. He added that if one wants to own Bitcoin, they should do so directly.

Cramer’s comments follow a broader trend where some investors are shifting away from indirect bets through vehicles like Bitcoin Exchange-Traded Funds (ETFs) or derivatives, and toward the security and transparency of direct ownership in assets like Bitcoin.

Cramer has had a complex relationship with cryptocurrency, having previously expressed skepticism and disdain, especially following the major takedowns of crypto entities like the FTX exchange.

In December 2022, he announced having sold all of his crypto and stated that he “wouldn’t touch crypto in a million years.” However, by January 2024, he was praising Bitcoin’s “remarkable comeback” and calling the digital currency a technological marvel that’s “here to stay.”

This evolution in Cramer’s perspective highlights the growing mainstream acceptance of Bitcoin, largely due to increasing institutional interest and a friendlier U.S. regulatory environment.

Cramer’s move comes at a time when Bitcoin is holding above the 100,000-dollar mark, an indication that major institutional investors now view it as a credible asset class.

Cramer’s latest endorsement of Bitcoin has drawn mixed responses within the cryptocurrency community.

While many see it as a positive step in increasing Bitcoin adoption among traditional investors and cementing it as an asset, others remain skeptical, especially given Cramer’s past criticisms.

Many in the crypto world adhere to the so-called “Inverse Cramer” theory, which suggests that whenever Cramer endorses an asset, it often signals the opposite for market movements.

Some Bitcoiners have joked that because Cramer endorses the cryptocurrency, it’s time for a Bitcoin crash.

Despite these mixed reactions, Bitcoin is up more than 100% over the last year, once again demonstrating that those who can withstand the volatility will be rewarded. Currently trading over $103,000, Bitcoin still appears very strong, although broader market conditions are met with varying opinions.

Jim Cramer’s endorsement of Bitcoin as a core portfolio asset marks growing recognition of the cryptocurrency in mainstream finance. The fact that he now suggests holding the asset directly and not a proxy like MicroStrategy indicates a greater understanding of its underlying value and its potential.

To investors, this is a significant moment in how digital currencies have made their way into more traditional investment strategies.