In a new interview on CNBC’s Squawk Box, the CNBC host and ex hedge fund manager Jim Cramer, issued a severe crypto warning to investors, predicting that the world’s largest cryptocurrency according to CoinmarketCap could plunge to a new $12,000 low.
Bitcoin maximalists must take a stand to prevent a critical price drop
Cramer in the interview asserted that Bitcoin top guns must take a stand soon so the coin doesn’t plunge further because if it does, that could be very dangerous for the entire crypto market. The industry is already in a very dire situation.
He goes on to say the coin could touch $12,000 which is where the whole thing began if steps are not taken to keep it afloat. Cramer continuously noted that BTC dropping to such a ridiculous price could be averted if the coin’s maximalists take a stand and see to it.
I think the people who are involved in Bitcoin have to take another stand… we need some guys to say ‘look, this is the level.’ That’s typical of what happens when it’s about to really drop big.
Just last week, the former hedge fund manager made it known that he’s a big believer in BTC and ETH, stating that they are the “most legitimate” digital assets. Cramer also noted that he owns crypto and wouldn’t advise anyone not to own some.
Bitcoin miners embattled as hashrate skyrockets
According to Blockchain.com, The total revenues paid to miners have fallen to their lowest level in nearly a year and the share prices of listed miners Marathon Digital and Hut 8 Mining have both fallen 41% in the last one month.
Mining Bitcoin has become more competitive and mining has gone up significantly, with Bitcoin hash rate hitting an all-time high on 12 June. Widespread Bitcoin mining has made production of coins difficult and more energy required.
Yuya Hasegawa, crypto market analyst at bitbank, warned in a note on Friday,
If the current situation continues, miners will likely sell their Bitcoins when the price rebounds, which will slow down the pace of price recovery and could put Bitcoin in a range-bound move for a while.