Jim Cramer Questions Bitcoin Stability After Drop Below $80,000

TLDR

• Bitcoin fell to $76,511, slipping below the $80,000 level over the weekend.
• Jim Cramer said BTC’s fall shows its unreliability as a short-term currency.
• Cramer noted that major holders did not defend Bitcoin at $80,000.
• MSTR earnings are due February 5, adding pressure on Bitcoin and its stock.

Bitcoin’s fall below the $80,000 mark over the weekend has renewed debate about its short-term reliability. CNBC host Jim Cramer has raised concerns over the lack of market defense during the decline and questioned the role of major holders in stabilizing Bitcoin’s price.

Bitcoin Drops Below Key Price Level Amid Volatility

Bitcoin’s price fell sharply below the $80,000 mark over the weekend, triggering renewed scrutiny of its stability. As of early Monday, Bitcoin was trading at $76,511, down nearly 2% over the previous 24 hours. The drop followed a wider downturn in the crypto market, with Ethereum and other major altcoins also posting losses.

Jim Cramer, host of CNBC’s Mad Money, reacted to the decline on X, formerly Twitter. He labeled Bitcoin’s weekend crash a reflection of its unreliable behavior as a short-term store of value. “The demonstration of what can happen in a weekend with Bitcoin demonstrates its unreliability,” he wrote.

Cramer Questions Bitcoin Backers and Market Support

Cramer criticized what he described as the absence of strong support at the $80,000 level, calling it a “line in the sand.” He expressed surprise that influential Bitcoin advocates and large holders did not intervene to maintain that threshold. “I am always surprised that those who have the most to lose by a falling Bitcoin don’t defend it over the weekend,” he said.

The veteran investor pointed to a mismatch between Bitcoin’s perceived value and the actions of its supporters. He also warned that failing to reestablish the $80,000 level quickly could invalidate a bullish double-bottom pattern and damage investor confidence.

Strategy Inc. and Saylor May Influence Price Action

Cramer’s remarks also included speculation about possible strategic moves from Strategy Inc. (formerly MicroStrategy). The company, known for its large Bitcoin holdings, is expected to report earnings on February 5. Its executive chairman, Michael Saylor, posted a cryptic “more orange” message on X, hinting at a potential Bitcoin purchase.

Cramer suggested that short sellers may be attempting to push both Strategy’s stock (MSTR) and Bitcoin lower before the earnings report. “The shorts are probably trying to break him before that,” he posted. He further noted that defenders of Bitcoin might attempt to change the narrative with coordinated buying.

Market Sentiment Shifts Before Earnings Week

The price drop and the speculation around Strategy’s earnings have shifted sentiment among retail traders. On platforms like Stocktwits, traders expressed caution and even predicted possible liquidation or forced selling. MSTR stock saw a modest decline of 0.27% in overnight trading, after gaining 4.55% on Friday.

Strategy is expected to report revenue of $118 million and EBITDA of $10 million. Retail sentiment on MSTR shifted from ‘neutral’ to ‘bearish’ over the weekend, with message volume remaining high.

Cramer reiterated that despite the noise around Bitcoin, long-term investors should remain focused on corporate fundamentals. “You have to keep your eye on the prize, profits, and not Bitcoin or silver or whatever distraction suits you,” he posted

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