As gold crashes, Jim Cramer says money is ‘all going to crypto’

The host of CNBC’s Mad Money responds to gold’s surprising underperformance this week.

As the price of gold plunged on Friday, CNBC’s Jim Cramer said the rise of crypto may partly explain the sudden disinterest in the precious metal — a potential sign that the mainstream has flipped the script on Bitcoin (BTC) and digital assets. 

When asked why gold isn’t rallying amid the political chaos on Capitol Hill this week, Cramer said the market is either not as chaotic as it seems or that all of the money is going into cryptocurrency:

either it is not as chaotic out there so gold doesn’t jump or it’s all going to crypto! But remember there has been no flight to quality (treasurys) https://t.co/nExv3O7dRm— Jim Cramer (@jimcramer) January 8, 2021

The price of gold sold off more than $60 on Friday, hitting a low of $1,852.50 per troy ounce on the Comex division of the New York Mercantile Exchange. Bitcoin, meanwhile, surged to new all-time highs above $41,000.

Cramer is a recent convert to Bitcoin and cryptocurrency, having bought the mid-December 2020 dip when BTC was under $18,000. He said of his purchase at the time: “I will buy — like I usually do — as something comes down. […] I’m going to diversify into some Bitcoin — not a big position for me — but it’s certainly important to be diversified, and Bitcoin is an asset and I want to have a balance of assets.”

If Cramer held onto his BTC, his position has more than doubled by now.

The flagship cryptocurrency continues to outperform gold and every other major asset thanks in part to an influx of new institutional buyers. Measured in bullion, 1 Bitcoin is now worth more than 20 ounces of gold. A week earlier, the Bitcoin-gold rate was around 15 ounces.

The idea that Bitcoin is taking market share from gold is nothing new. A recent analysis from JPMorgan Chase concluded that Bitcoin’s digital gold narrative is pulling investors away from precious metals. The analysts said this trend could intensify as more institutional money pours into the crypto space.
http://dlvr.it/Rq9rVN

You might be interested in …

Law Decoded: Bank payments going global with stablecoins and CBDCs, Jan. 15–22

Uncategorized

Retail users may have to wait in much of the world, however. Editor’s note It may be too late for resolutions and too early for Lent, but lacking any discrete occasion, I would still like to give up United States political news for a while, or at least for the duration of one Law Decoded.  […]

Read More

Bitcoiner Loses Password to 7,002 Bitcoins Worth $240 Million

Uncategorized

A bitcoiner has shared his story of how he lost access to his 7,002 bitcoins, worth about $240 million at the current price. He has lost the piece of paper on which he wrote his password and now has two guesses left before his device seizes up and encrypts its contents forever. 7,002 Bitcoins Worth […]

Read More

Bitcoin’s next move, Elon Musk’s promotion, the toilet paper NFT: Hodler’s Digest, March 14–20

Uncategorized

Coming every Saturday, Hodlers Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more a week on Cointelegraph in one link. Top Stories This Week Bullishness for Bitcoin continues despite its struggle to reclaim $60,000 Bitcoin […]

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *

css.php