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Jim Cramer’s Skepticism on Bitcoin
Jim Cramer expressed doubts about the cryptocurrency market on the social media platform X, particularly regarding Bitcoin’s BTC utility amid ongoing geopolitical tensions.
Geopolitical Tensions and Bitcoin’s Safe-Haven Status
As the conflict between the U.S. and Iran escalates to unprecedented levels, Cramer challenged the widely accepted belief that Bitcoin functions as a safe haven asset.
Cramer Questions Bitcoin’s Leverage
“At the risk of upsetting everyone, what IS Bitcoin leveraged to? I thought it could be a solid hedge against an Iranian conflict. NOPE,” Cramer conveyed on X.
Military Activity in the Middle East
This commentary comes amidst reports that the U.S. is increasing its military presence in the Middle East, bringing air assets to levels not seen since 2003, including the deployment of Lockheed Martin Corp F-35s.
Price Movements in the Crypto Market
The broadcaster did not hold back regarding the recent market activity, noting in a follow-up post, “these ‘cryptos’ are being slaughtered today…”
Concerns from Crypto Influencers
Cramer’s skepticism aligns with remarks from crypto influencers such as Ran Neuner, who stated that Bitcoin has failed its critical test as a store of value. While Strategy Inc. has been aggressively purchasing Bitcoin, investors have been shifting their capital predominantly to traditional assets like gold during this turbulent period.
Defense Stocks on the Rise
As digital assets struggle, the potential for an extended air conflict has benefited defense equities. Companies like Karman Holdings Inc and Kratos Defense & Security Solutions Inc have seen significant gains as market predictions suggest a 48% chance of regime change in Tehran by September.
Photo: Courtesy vshtun on Shutterstock
