CNBC broadcaster Jim Cramer is once again advising investors to avoid crypto assets including Bitcoin (BTC), instead opting for gold.
In a fresh update, the host of Mad Money believes the latest price surge in the top digital asset by market cap hasn’t convinced him of its authenticity.
“Now that Bitcoin has spent the previous several weeks bouncing off its lows, the whole crypto-industrial complex is back in full gear, seeking to pull people back in. That, I believe, would be a major mistake for you.”
Cramer attacks Bitcoin’s “legion of cheerleaders” for continuing to support the sector in the aftermath of FTX’s high-profile failure and the subsequent contagion that spread to other major crypto businesses.
“For years, these gurus convinced us that Bitcoin was the ideal alternative asset to gold. They claimed it was a terrific hedge against inflation… at a time when central banks were producing money like crazy, but it wasn’t a hedge against anything.”
Cramer cites Bitcoin’s strong association with the Nasdaq 100 Futures chart to show that BTC is a risk asset, not a currency or a reliable store of value. He advises traders seeking a hedge against inflation to disregard Bitcoin maximalists and continue buying gold.
At the time of writing, BTC is trading at $22,678, down 1.16% in the last 24 hours but up 38% from its 30-day low of $16,464.
