Jim Cramer, the former hedge fund manager and host of CNBC’s Mad Money, has reversed his bearish stance on bitcoin (BTC) and expressed optimism about its future. This change in perspective comes as the price of bitcoin surpassed $45,000 for the first time in 21 months and ahead of the anticipated regulatory approval of a spot ETF in the United States.
In an interview with CNBC’s David Faber, Cramer referred to bitcoin as a “technological marvel” and emphasized the need for people to recognize its permanence in the financial landscape. He also acknowledged the skepticism of Charlie Munger, a well-known critic of bitcoin, stating that Munger was “blind to this.”
Cramer’s current viewpoint stands in contrast to his earlier remarks in October, during the Sam Bankman-Fried trial, when he expressed disinterest in investing in bitcoin, predicting a significant decline in its value. He had previously sold most of his bitcoin holdings in 2021 following China’s crackdown on cryptocurrency mining.
However, despite his newfound optimism, Cramer cautioned that not all current bitcoin investors are in it for the long term. He also suggested that the approval of spot ETFs could lead to a “sell the news” event, indicating that the market might experience a temporary downturn.
The price of bitcoin surged above $45,000 overnight, reaching levels not seen since early April 2022. This increase in value was fueled by speculation surrounding the potential approval of several spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). The agency is expected to make decisions on these ETF applicants by January 10.
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