Bitcoin Hits $67,000: Jim Cramer Sheds Light on the Surge
Bitcoin BTC/USD reached new heights by crossing the $67,000 mark on Monday, showcasing a formidable surge over the past six months. CNBC’s adept commentator Jim Cramer has decoded the driving forces behind this revelation.
Insight into Bitcoin’s Momentum: The recent resurgence of Bitcoin, marching back towards its peak in November 2021, has been widely credited to the approval of spot Bitcoin ETFs and expectations surrounding the upcoming halving event in April. However, Cramer has a different take on what is fuelling the bullish sentiment.
Voicing his perspective on CNBC’s “Squawk On The Street,” Cramer mused, “Initially, I attributed Bitcoin’s rise to the ETFs. But now, it seems individuals are questioning their reliance on traditional fiat currencies.”
Cramer elaborated on his thesis, suggesting that Bitcoin is serving as a strategic diversification tactic against the inherent instability of the U.S. dollar and other fiat currencies, which are not tethered to valuable commodities like gold.
Reflecting on history, Cramer highlighted the U.S. decision to abandon the gold standard in 1971, consequentially witnessing a significant erosion of the U.S. dollar’s purchasing power over the last five decades.
Recent analysis by BofA’s Michael Harnett has correlated Bitcoin’s surge with the escalating U.S. national debt, which is rising by approximately $1 trillion every 100 days, on track to surpass $35 trillion by April.
Given that Bitcoin’s supply is capped at 21 million coins, many view it as a protective shield against the continuous devaluation of fiat currencies, led by the U.S. dollar’s depreciation.
Expressing the sentiment of the younger cohort, Cramer remarked, “The prevailing belief among the youth is that the only recourse to financial redemption is through monetary inflation, ensuring transactions take place with diminishing dollar value.”
While Cramer has exhibited a fluctuating stance on Bitcoin and the broader crypto domain, notably trading in and out of Bitcoin in early 2021, his recent comments hint at a potential reconsideration. His recent appraisal of Ethereum’s prospective surge and the looming approval of Ethereum ETFs hint at a burgeoning optimism towards the crypto segment.
“Initially, my presumption was driven by the ETF narrative. Nevertheless, the imminent advent of an Ethereum ETF will spark a new wave in the crypto realm, so brace yourselves,” Cramer concluded.
Curious about what’s next for Ethereum and Cramer’s evolving perspective on crypto? Read it here.
$BTC Price Action: Bitcoin exhibited a 6.02% uptick over a 24-hour span, maintaining a price of $66,644 at the time of reporting, as per Benzinga Pro.
Image Courtesy: Eivind Pedersen from Pixabay.