Jim Cramer Treating Bitcoin Like Stock, Sold Cost Basis After Valuation Doubled
Jim Cramer was interviewed by Katherine Ross to share early predictions for 2021. Part of the conversation centered on Cramer’s take on Bitcoin, one of the hottest stories of 2020.
Cramer on Bitcoin: Cramer told Ross he plans on holding his remaining portion of Bitcoin.
“I bought it more as an asset than a trade,” Cramer said.
The CNBC host bought bitcoin after appearing on a September podcast with Anthony Pompliano. The cryptocurrency was trading at around $10,000 when Cramer appeared on the podcast.
Cramer’s bitcoin more than doubled since he made his purchase around $14,000. As he does with stocks, Cramer said his rule is to take out the cost basis when a stock doubled.
Related Link: 8 Stocks To Play Bitcoin's Resurgence
“I’m not doing anything I wouldn’t do with a stock.” Cramer has sold off almost his entire cost basis and is letting the rest run. “I’m gonna say hold on.”
Cramer cautioned that Bitcoin may have gone from being a currency to a speculative object. He said he would consider adding more to his position if Bitcoin fell to the $14,000 or even the $18,000 range.
Bitcoin Price Action: Bitcoin trades around $31,083 at publication time. The crypto hit new all-time highs over the weekend with the price soaring to $34,000.
The Grayscale Bitcoin Trust (OTC: GBTC) was up 10% to $35.08 on Monday.
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