Jim Cramer has disclosed that he has sold “almost all” of his bitcoin holdings. According to Cramer, he said the reason he sold was due to issues surrounding the asset. He cited the recent China crackdowns on mining as one of the reasons he got out. With the hash rate down, he didn’t see any reason the coin could recover.
Cramer was on Squawk on the Street to talk about his investment holdings. He listed three reasons why he had sold most of his bitcoin. The China crackdowns were one. Which he believes is just beginning and will continue on. The integrity of stable coin Tether. Pointing out that he didn’t trust the coin and its link to the market. Then finally, the issue of ransomware attacks. Bitcoin has been used to collect ransom for these attacks.
Cramer Doesn’t Need Bitcoin
Moving on, Cramer talked about the current bitcoin support at $30k. “$30,000 intraday. Look out, gotta hold. Maybe the buy point. I’m not going there. Sold most of my bitcoin. Don’t need it.”
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The Mad Money host divulged that he used the proceeds from his bitcoin sale to pay off his mortgage. Although Cramer has always been a big proponent of bitcoin, he does not believe the coin will go up. Citing structural reasons as the reason he thinks so.
“I am saying that this is not going up because of structural reasons,” Cramer said.
Jim Cramer said he bought most of his bitcoin at the $12,000 price range. Making massive profits from the number 1 digital currency. But it is unclear when he sold his coins.
Bitcoin currently trading at $32,000 | Source: BTCUSD on TradingView.com
He further disclosed that he planned to buy back in when the coin hits the $10,000 price range.
Time To Sell Your Coins?
Investing has always been a personal journey. People get in at different times of the market. Different price ranges, different market cycles. It is why dollar-cost averaging is important in investing.
The price point at which Cramer bought is one that he could comfortably sell now and know that he has made a decent amount of profit. Other people bought in at much higher prices. Some investors got in at the height of the bull market. Buying their coins at almost $65k per bitcoin.
This is why investors must decide for themselves when is a good time to sell. Profits are the number 1 motivator for investing in digital currency. So if you bought at a point where you are now in the red, it would be a loss for you to sell now.
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Besides, situations are different. Cramer, for example, sold his coins to pay off his mortgage. He is also taking a gamble that the coin will fall down to $10,000. At which point he plans to buy back into the market.
Only you know what you can afford to lose. You know the reason you invested in bitcoin. So you’re the only one that can decide when the best time is for you to sell.
Featured image from Bitcoin News, chart from TradingView.com