Jim Cramer’s Bitcoin Investing Strategy: ‘Playing With the House’s Money’
On Monday (January 11), Former hedge fund manager Jim Cramer explained during an interview why he had recently decided to sell some of his BTC holdings.
Cramer is the host of CNBC show “Mad Money w/ Jim Cramer“. He is also a co-anchor of CNBC’s “Squawk on the Street“, as well as a co-founder of financial news website TheStreet.
On 10 September 2020, Anthony Pompliano (aka “Pomp”), who is a co-founder of Morgan Creek Digital as well as the host of “The Pomp Podcast”, told his almost 370K followers on Twitter that he had managed to convince Cramer to buy some Bitcoin (apparently during a recent podcast interview with Cramer).
Then on 11 December 2020, Cramer told Katherine Ross, a correspondent for TheStreet, that he had just bought more Bitcoin, and proceeded to explained why:
“Yeah, I just felt that back at $17[k] seemed like a decent level, and I will buy — like I usually do — as something comes down. I’ll get bigger and bigger and bigger.
“I just think that you want to diversify into all sorts of asset classes. I have gold. I’m going to diversify into some Bitcoin — not a big position for me — but it’s certainly important to be diversified, and Bitcoin is an asset and I want to have a balance of assets.”
Well, yesterday, Ross asked Cramer during an interview what he thought about Bitcoin’s recent price action.
Cramer talked about what he thinks about the Bitcoin markets and explained why he had recently (before the large correction that started on Sunday) sold some of his Bitcoin holdings.
“There’s a belief that this somehow has a market that is not erratic. I have tried to do a trade in Bitcoin over a weekend, and it’s really really hard to do… and I think what people have to recognize is this market is not like any other market you’ve ever seen.
“We don’t know who’s buying, we don’t know who’s selling ,we don’t know what’s going on, we don’t know anything about where it’s going. So, what I have said to do is take something off the table. If you’re up big and everybody’s still up big at $32,000 unless you unfortunately came in at $42,000…
“My goal was to get my cash out so I don’t have to think about it. So, [it] went to $42,000, went to $30,000, I don’t care. If it goes back to under $20,000, I’m a buyer again, but I got my cost out, and I’m playing with the house’s money, and this is no different from an entirely erratic stock except for it trades 24/7.“
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