However, already in the summer, the expert’s opinion began to change due to the fall of the market in May. The BTC rate fell to $ 30,000 today.
Cramer told CNBC that he had already sold the lion’s share of his cryptocurrency under pressure from the negativity that returned to the market.
Earlier, Cramer reported that he sold half of his BTC to close the mortgage loan. Now he said that he sold almost all of his BTC.
At the same time, at the end of 2020, Cramer spoke about the importance of portfolio diversification and increasing its own position. Also, after Tesla’s $ 1.5 billion investment, the presenter said that it is now “almost irresponsible” for companies not to include BTC in their reserves. However, as we can see, his position has changed.
Cramer sells its assets amid falling BTC price
Cramer stated that the fall in cryptocurrency naturally pushed him to the decision to sell. The industry was hit by China. It was this factor that provoked the entry of Bitcoin and other cryptocurrencies into the “bear” phase, the expert emphasized.
Recall that the People’s Bank of China demanded that commercial banks stop servicing accounts linked to OTC platforms. At the same time, pressure on miners is increasing. It has already led to a collapse of the BTC hash rate.
The host of the Mad Money show noted that usually, with a decrease in the hash rate, the BTC rate should rise. However, now there is a sale of BTC all over the world, so the rate continues to fall.
However, in the near future, the trend should change. And the drop in computing power in the network will become one of the triggers for the resumption of Bitcoin’s expansion, Cramer predicts.
The “whales” are selling their assets
June saw the largest daily inflow of BTC to crypto exchanges since March 2020, analysts from the blockchain company CryptoQuant found out. Its chief executive, Ki Young Ju, said that the “whales” have started selling assets. It strengthens the bearish sentiment in the market. Big holders of cryptocurrencies are called “whales”.
CryptoQuant uses the whale surrender index, which allows you to assess their actions at the current time. Now the index has moved into the positive zone, which indicates the possible sale of BTC by large players. The index was positive in 2018 and 2019 when cryptocurrencies were in deep correction.
On May 18, 2021, the previous record inflow of Bitcoins was recorded – a maximum of 14 months. The next day, the cost of the first cryptocurrency fell by almost a third to $ 30,000.
Users are supposed to start actively sending their Bitcoins to exchanges when they want to get rid of them. The outflow of cryptocurrency from the trading platform suggests the opposite. That investors continue to keep assets in anticipation of further growth in quotations.
Is the market waiting for another period of “crypto winter”?
Over the past day, Bitcoin has lost 9% of its value and at the time of publication is trading about $ 30,500, and the rollback since the beginning of the week is already 20%. Despite one of the most successful periods in the history of the cryptocurrency, now its price is even 2% below the levels of the beginning of the year. Altcoins, in their characteristic manner, are decreasing even faster – Dogecoin, for example, has fallen in price by 30% over the course of a day and is now quoted below $ 0.20.
Some experts admit that the market is waiting for another period of “crypto winter”.
“I hate to talk about it, but it looks like the bear market in Bitcoin is confirmed. Too many “whales” are transferring their BTC to exchanges. Historically, the predominance of whale inflows has coincided with the onset of a bear market”, wrote Ki Young Ju, CEO of analyst firm CryptoQuant.