Despite Bitcoin reaching a 21-month high above $45,000 at the start of January, historical data reveals that the month typically doesn’t yield positive returns. Over the past five years, the largest cryptocurrency has only gained in January twice, with a 40% increase last year but a 16% loss the year before. Currently trading around $42,000 after an 8% drop in 24 hours, the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the U.S. could trigger a rally, with LMAX Digital suggesting a possible 10% move in the immediate aftermath.
Jim Cramer, the ex-hedge fund manager and CNBC’s Mad Money host, shifted from his earlier bearish view on bitcoin (BTC) on Tuesday. This change coincided with the anticipated U.S. regulatory approval of a spot ETF and the cryptocurrency’s price surpassing $45,000 for the first time in 21 months. “This thing, you can’t kill it,” Cramer told CNBC’s David Faber. “Bitcoin is a technological marvel and I think people need to start recognizing it’s here to stay.”
Cramer acknowledged another well-known bitcoin skeptic, describing the late Charlie Munger as being quite critical. This differs from Cramer’s earlier stance in October during the Sam Bankman-Fried trial, where he expressed disinterest in embracing crypto, citing concerns of a significant downturn. Additionally, he had disclosed selling most of his bitcoin holdings in 2021 following the China mining crackdown.
