The former hedge-fund manager of Cramer & Co. and host of Mad Money on CNBC, Jim Cramer продал most of his bitcoins following news of mining restrictions in China.
Cramer warned of structural issues with digital gold and predicted further declines in its price.
Among the reasons he cited were concerns about the stablecoin Tether, ransomware attacks demanding payment in cryptocurrency, and the crackdown on miners in China.
In Jim Cramer’s view, Bitcoin poses a direct threat to Chinese authorities:
“When the PRC goes after something, they tend to see it through. This is not democracy. This is dictatorship. I think they see Bitcoin as a direct threat to the regime because of what it is – a system outside their control.”
Cramer also said that a decline in mined coin supply could have positively affected Bitcoin’s price, but that did not happen.
“When mining is restricted, Bitcoin should obviously go up, unless holders are selling off across the board,” he explained.
Mad Money host added that a potential drop of Bitcoin to $30,000 could be a buying opportunity for new investors. The host himself does not plan to buy cryptocurrency:
“I won’t enter. I sold almost all of my bitcoins. I don’t need them,” he noted.
In April, Jim Cramer admitted that he sold half of his bitcoins, to pay off a mortgage.
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