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Jim Cramer's New Bitcoin Theme Is 'Number Go Down'; Plus 200,000 BTC Mt. Gox Distribution Could Add To Supply Flush

Published 23/01/2024, 17:14
© Reuters. Jim Cramer's New Bitcoin Theme Is 'Number Go Down'; Plus 200,000 BTC Mt. Gox Distribution Could Add To Supply Flush
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Benzinga - CNBC "Mad Money" host Jim Cramer reiterated his cautious stance on Bitcoin (CRYPTO: BTC) prices and its inability to regain stability.

What Happened: Bitcoin is down 20% since its spot ETFs launched, but Cramer's new theme is "Number Go Down:"

Believers in the "Inverse Cramer" phenomenon, counter-trading the "Mad Money" host's public price calls, are becoming notably less confident:

Cramer has been consistently bearish on Bitcoin's prospects, saying it is unlikely Bitcoin will find footing at $40,000 and it is still far from the bottom. He has also called Bitcoin tough to own.

Read Also: Elizabeth Warren Strikes Again: Unleashes A Tidal Wave Of Reactions In Crypto Circles

Why It Matters: Bitcoin prices are trading 4.6% down in the past 24 hours, plunging to levels below $39,000. This marks the lowest price since December 2023.

The downtrend may not be over yet either. LayerGG, a research project, highlighted the following potential bearish catalysts:

  • Outflows from Grayscale (OTC: GBTC) of $500 to 600 million per day.
  • Potential 200,000 Bitcoin to be distributed from Mt.Gox reimbursements.
  • Potential 100,000 Bitcoin to be distributed from Silk Road seizures.

Most notably, the trustee of Mt. Gox, the hacked cryptocurrency exchange, reportedly connected to its creditors for identity confirmation and account existence. It is looking for Bitcoin distribution of 200,000 tokens over the next two months on Bitstamp and Kraken accounts.

In late December 2023, the first repayment reports from Mt. Gox were revealed, with some creditors receiving double payments.

Thus, the short-term dynamic between supply and demand for Bitcoin hangs in the balance: a potential 200,000 supply flush on the one hand, versus the 160,000 Bitcoin supply shock by the Bitcoin halving in April on the other hand.

Read Next: Arthur Hayes On Bitcoin: 'I Think We Break $40K,' Traders See 'Halving In 4 Months' For Next Price Upswing

Photo: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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