Jim Cramer Says Bitcoin Price Drop Shows It Can’t Be a Real Currency

TLDR

• Jim Cramer stated that Bitcoin’s weekend crash proves it is too volatile to function as a real currency.
• He criticized the lack of action from major investors during the drop below the $80,000 support level.
• Cramer expressed concern that short sellers are targeting Michael Saylor ahead of Strategy’s earnings report.
• He warned that Bitcoin rallies driven by corporate purchases should not be trusted as signs of recovery.
• Despite owning Bitcoin, Cramer maintained that its unstable price makes it unreliable for regular transactions.

Jim Cramer expressed concern over Bitcoin’s volatility following a steep weekend sell-off, questioning its use as a stable currency. Despite holding Bitcoin, the CNBC host stressed that its unpredictable movements disqualify it as a reliable medium of exchange. Cramer pointed to recent price action as evidence of structural issues in the cryptocurrency market.

Bitcoin Price Falls Draw Harsh Words From Cramer

Cramer reacted sharply to the rapid Bitcoin price drop, citing it as proof of instability in the digital currency market.

He emphasized that even as a holder, he questioned Bitcoin’s utility during high volatility periods.

Cramer criticized the absence of resistance from major investors during the downturn, suggesting they should have protected key technical levels. He referred to the break below $80,000 as a key failure. According to him, this breach shattered the belief that Bitcoin could be defended by its biggest backers.

While Bitcoin hovered above $74,000, Cramer estimated a short-term bottom at $73,000. He stated that the silence of industry leaders during the crash was unexpected. “Where are the usual Bitcoin defenders?” he asked, questioning the lack of support from institutional players.

Cramer linked the sell-off to upcoming earnings from Michael Saylor’s firm, Strategy (MicroStrategy), scheduled for February 5. He warned, “The shorts are probably trying to break him before that,” implying targeted market pressure. He pointed out that such actions may be deliberate, especially around low-volume weekends.

He referred to Strategy’s pattern of purchasing Bitcoin on Mondays, but cautioned investors.

He compared the Bitcoin crash to sudden movements in gold and silver markets.

Cramer Doubts Bitcoin’s Role as Currency

Cramer repeated that Bitcoin cannot serve as a functioning currency due to its instability. He highlighted how short-term price collapses damage Bitcoin’s credibility. The failure to hold key technical levels weakened its case as a medium of exchange.

He remained critical despite his personal Bitcoin holdings. He said Bitcoin’s weekend breakdown showed how easily its structure could be manipulated.

Cramer added that Bitcoin’s behavior on low-volume days exposed its lack of institutional support. He called out the absence of protective buying. These events, he explained, made Bitcoin unreliable for transactional use.

Cramer concluded that earnings speculation, short pressure, and lack of defense contributed to the current breakdown. By Sunday night, he continued sharing warnings about interpreting any rebound. He reinforced that any bounce would not reverse the damage from the earlier breakdown.

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