The host of Mad Money on CNBC and co-founder of TheStreet.com, Jim Cramer announced that he made a well-timed Bitcoin investment last week to diversify his investment portfolio. He also expressed his desire to buy more in case of a dip in the crypto market.
Cramer mentioned his views about the recent developments in cryptocurrencies during an interview with TheStreet. He didn’t disclose the exact amount of his Bitcoin holdings but outlined that he purchased BTC recently between a price range of $17,000 – $18,000.
The former hedge fund manager termed Bitcoin as a perfect tool for portfolio diversification. “As an investor, you want to diversify into all sorts of asset classes. For me, it’s not about having a massive position, but it’s certainly important to be diversified and Bitcoin is an asset. And I want to have a balance of assets,” Cramer added.
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Cramer expects the price of BTC to come down again because of its volatile nature. While talking about the recent price volatility in the world’s largest cryptocurrency, Cramer said: “Bitcoin is off nicely from the top. I like to buy something that’s off nicely from the top.”
The recent boom in crypto adoption indicates that Wall Street treats cryptocurrencies as an important asset for portfolio diversification. World’s top hedge fund manager, Ray Dalio from Bridgewater Associates termed bitcoin as a good tool for portfolio diversification. Dalio also compared BTC with Gold as an asset class and said that both have similarities. Cramer’s recent stance on cryptocurrencies came as a surprise for the crypto community because the host of CNBC’s Mad Money criticized Bitcoin and other cryptocurrencies during the boom of 2017 and said that “Crypto assets are running out of steam”. Cramer shares a good relationship with co-founder and partner of Morgan Creek Digital Assets, Anthony “Pomp” Pompliano. During a podcast in September with Pompliano, Cramer showed his desire to invest around 1% of his overall investment portfolio in Bitcoin.