Jim Cramer called Bitcoin (CRYPTO: BTC) a “strange animal” and suggested that it is being “manipulated up”.
Despite a 12% increase in the largest digital currency over the last 24 hours, Cramer argued that there is no clear use case for Bitcoin.
Cramer’s remarks followed the bailout of two major U.S. lenders, Silicon Valley Bank (NASDAQ:SIVB) and Signature. When asked if the stress on the banking system and the Federal Reserve strengthened Bitcoin’s investment case, Cramer replied, “No”.
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Cramer’s previous support for Silicon Valley Bank was noteworthy, as he had encouraged viewers of his show “Mad Money” to invest in the now-defunct bank.
However, Cramer is known for making inverse calls, and his recommendations have sometimes led to the creation of memes and indexes.
The Inverse Cramer Index, launched in 2017, has gained 105.31% since its inception.
The recent announcement by U.S. authorities that deposits in failed banks would be protected led to a surge in Bitcoin’s price. The cryptocurrency broke the $26,000 ceiling, a 20% increase from Friday’s lows.
The price rise caused a rally in major cryptocurrencies and crypto-related companies.
Nevertheless, the collapse of Silicon Valley Bank and Signature is expected to result in a significant slowdown in Fed rate hikes.
Next: Silicon Valley Bank Crisis – Justice Department, SEC To Investigate What Happened Behind Closed Doors