Bitcoin is a better investment than MicroStrategy stock

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Jim Cramer, the outspoken host of CNBC’s “Mad Money,” has caused a stir in the financial sector, Bitcoin (BTC) approval for MicroStrategy stock (MSTR). This recommendation is being followed despite MSTR’s significant year-to-date performance of 85% compared to Bitcoin’s 125% growth.

Cramer’s support, however, is met with a dose of skepticism. The financial guru is known for his sometimes misleading predictions, and some even claim that his recommendations backfire – a phenomenon known as the “reverse Cramer” theory.

MicroStrategy doubles the value of Bitcoin

While Cramer throws shade at MicroStrategy, the company remains a staunch supporter of Bitcoin. CEO Michael Saylor is a vocal “Bitcoin Maxi”, having a significant personal stake in the cryptocurrency and spearheading the company’s massive BTC acquisitions. This unwavering commitment contrasts sharply with Cramer’s sudden change.

Bitcoin ETF outflows cast a shadow

Cramer’s advice also coincides with a period of uncertainty for Bitcoin ETFs. Grayscale, the largest Bitcoin ETF management company, has seen a recent exodus of investors due to fees associated with their product. Additionally, newly launched Bitcoin ETFs in Hong Kong have seen more redemptions than deposits over the past few days, indicating cautious investor sentiment.

The total market capitalization of cryptocurrencies is currently $2.2 trillion. Chart: TradingView

Sell ​​Pressure Suppresses Bitcoin’s Momentum

Adding fuel to the fire, the Bitcoin market itself is struggling. The recent price drop below $62,000 is accompanied by significant selling pressure in spot markets, raising concerns about a potential downward trend.

Are we under the curse of “reverse Cramer”?

Given Cramer’s history and the “reverse Cramer” theory, some investors may be hesitant to follow his current recommendations for Bitcoin. If history repeats itself, his endorsement could unintentionally trigger a sell-off.

Bitcoin price up in the last 24 hours. Source: Coingecko

Cramer Comments: A double-edged sword for cryptocurrency awareness

Despite the uncertainty surrounding his conversation, there are positives to Cramer’s entry into the Bitcoin discussion. Cryptocurrency discussions led by prominent figures like Cramer can raise public awareness of blockchain technology, potentially attracting up-to-date investors to the digital asset space.

Verdict: gambling in a shadowy market

Cramer’s sudden change in attitude towards Bitcoin leaves investors in a quandary. While Bitcoin offers a higher potential return than MicroStrategy stock, recent market trends and Cramer’s track record suggest a degree of risk. Ultimately, the decision to invest in Bitcoin directly or through MicroStrategy remains a risk in a currently uncertain market.

Featured image from Pexels, chart from TradingView


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