Cramer ‘sold almost all’ of his bitcoin, fears China is over crypto

CNBCs Jim Cramer said Monday it dumped most of its bitcoin holdings and raised concerns about the recent ones Raid against crypto mining by the Chinese government and Bitcoin’s role in some ransomware attacks.

“I’ve sold almost all of my bitcoin. Don’t need it,” Cramer said “Quäk on the street”, more than two months after first indicating that he was trimmed its position and with those profits paid off a mortgage.

Bitcoin price fell more than 6% on Monday to around $ 33,000 per token, roughly a two-week low. The move down follows a report in Communist Party-backed Global Times, which said more than 90% of the country’s mining capacity was shut down after authorities shut down “many mines” in Sichuan Provence.

China has been home to for years more than half of the world’s extraction capacities. Miners play a vital role in the Bitcoin ecosystem by using high-performance computers to verify transactions across the decentralized blockchain. In return, they are rewarded with Bitcoin.

“When the PRC persecutes something, they tend to get their way. … It’s not a democracy. It’s a dictatorship,” said Cramer, using an acronym for the People’s Republic of China. He added, “I think they believe it is a direct threat to the regime because it is a system that is beyond their control.”

Cramer – who previously owned his Bitcoin as. described an alternative to a cash position – said Tuesday he also has concerns about how the U.S. government will approach the world’s largest cryptocurrency by market value in the face of the Colonial Pipeline attack.

In this cyber incident that took place in May disturbed gas supply on the east coast, the company pays a ransom of $ 5 million in Bitcoin to the hackers. US law enforcement was up Can bring back $ 2.3 million this payment.

“In our country, I think it’s beyond our control when it comes to ransomware, and I doubt Colonial will be the first company to pay for ransomware. I think they are the first to almost shut down the east coast, ”said Cramer. “I think the Department of Justice and the FBI and the Federal Reserve and the Treasury Department could join forces and say, ‘Okay, folks, if you pay for ransomware, we’ll go after you.”

Shortly after the colonial era, another ransomware group targeted the world’s largest beef supplier. This company, Brazil’s JBS, phelp the hackers $ 11 million.

Looking at these two headwinds for Bitcoin, Cramer said, “I’m saying this will not increase for structural reasons.”

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