On January 23, Jim Cramer advised investors to ignore "crypto cheerleaders" and instead invest in gold.
Cramer's urgency comes after Bitcoin hit $23,000 on Monday, a 35% increase in the last 30 days.
CryptoTwitter and financial market traders have mocked Cramer in the past for his unreliable investing advice.
- Read more: Will Bitcoin go back up? Let's find out!
Cramer advises crypto traders to buy Gold after Bitcoin continues to rally past $23,000
Despite Bitcoin's recent surge, Jim Cramer of CNBC advised cryptocurrency traders to sell their holdings and buy gold.
On Monday Bitcoin pumped through $23,000 before dipping sharply after the Federal Reserve in the U.S. announced that they may cut interest rates due to signs that inflation might be easing.
- Read more: Amazon to jump into blockchain gaming and NFTs in 2023
Cramer called for investors to ignore “crypto cheerleaders” during Bitcoin’s bounce and to find a “real hedge” against inflation by buying and holding onto gold.
Jim Cramer:
Of course, you can just own Bitcoin directly in a decentralized wallet — that protects you from counterparty risk — but if you ever want to use it for anything, the risk is back on the table. And as FTX’s customers learned, it can be devastating. On the other hand, gold, well, it’s the opposite
He subsequently compared a chart of Bitcoin and NASDAQ 100 Futures from 2021 to January 2023, noting that both indexes were moving in the same direction.
click to enlargeBy comparing the two graphs, Cramer suggested that Bitcoin is just a risky asset and shouldn’t be called a currency or store of value.
Some experienced crypto traders have described Bitcoin's latest surge as a strong bounce, with the crypto token expected to fall back below $20,000 before perhaps reaching $15,00 or lower.
For more articles like this, take a look at our Planet Crypto page.