CNBC Mad Money host Jim Cramer has revealed that he invested $500,000 in Bitcoin after growing frustrated with gold’s disappointing performance.
The colorful TV presenter made the revelation during an online interview with Morgan Creek Digital co-founder Anthony Pompliano, a notable Bitcoin bull. He said Pompliano had convinced him to buy Bitcoin, so he called his chief financial officer and told him to make the investment.
He also revealed that he has since cashed out his initial investment, leaving him with a moon bag that has simply continued to grow.
“I have always said to people, listen, if you could ever be in a situation where you can play with the house’s money, you take out what you put in, then you’re blessed and you never have to touch it,” said Cramer. “And that’s what I have done. There are a lot of people who are mad that I took out the money I put in. But now I’m never going to touch it, Pomp. I’m not and I may never.”
Cramer said his decision to invest in Bitcoin stemmed from a frustration with gold’s performance. He has long been bullish on gold due to the devaluation of the US dollar, but he has now admitted that it is “subject to too many vicissitudes”, such as mining issues.
He has been advising people to dedicate 10% of their portfolios to gold since 1983, but he has now changed his recommendation to 5% in gold and 5% in Bitcoin.
Over the past 12 months, gold has increased by 6.3% in value. In the same period, Bitcoin – dubbed digital gold – has soared by 700%, and it hit a new all-time high of $61,000 last weekend.
BTC has since endured a 12% correction, but that could be due to futures options expiring today, and most analysts expect the bull run to continue for several months.
Several Bitcoin ETFs have launched over the past month and the number of institutional and corporate investors continues to grow. Global Macro Investor Raoul Pal also claims that Temasek, a Singapore sovereign wealth fund, has also been buying Bitcoin directly from miners.
Temasek controls more than $300 billion, and its investment could represent another major milestone for Bitcoin adoption. The fund has previously invested in Binance Singapore, so it is no stranger to the crypto space.
Analyst Bobby Lee, founder of crypto exchange BTCC, predicts that the price of Bitcoin could increase by another 500% before the next market downturn takes place. He expects it to reach $100,000 by the summer and believes it could hit $300,000 by the end of the year.
However, he warns that it will then crash by 90% and then stagnate for several years in a prolonged crypto winter. “After it peaks out – whether it’s $200,000, $100,000, or even $300,000 – people should be aware that it could fall by 80% to 90% of its value from its all-time peak,” said Lee.