Cramer: MSTR Bitcoin Buy Could Create False Rally Signal

Cramer warns MicroStrategy Bitcoin purchase may create false bullish rebound signal past $80K.

  • CNBC host Jimmy Cramer warns that crypto firm MicroStrategy may announce a large Bitcoin purchase to boost BTC’s price after a weekend crash.
  • Cramer cautions this potential rebound could mask the bearish signal of BTC falling below $80,000, which traders might mistake for a bullish double-bottom pattern.
  • MicroStrategy faces added pressure from short sellers ahead of its Thursday earnings report, with retail sentiment turning bearish.
  • Despite owning some, Cramer called Bitcoin “unreliable” as a short-term store of value following the weekend selloff.

On Sunday, CNBC’s ‘Mad Money’ host Jimmy Cramer suggested that MicroStrategy (MSTR) might announce a significant Bitcoin acquisition the following Monday. This followed a cryptic, “more orange” social media post from the company’s executive chairman, Michael Saylor. Cramer’s warning, delivered in a post on X, centered on the risk of traders misinterpreting a price recovery.

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According to Cramer, any MSTR-led rebound could be mistaken for a bullish “double bottom” chart pattern. Consequently, this might distract from the fact Bitcoin had already broken below the key $80,000 level, a typically bearish signal. He further highlighted upcoming pressure points for the stock.

MicroStrategy is scheduled to report its fourth-quarter earnings on Thursday. Meanwhile, Cramer noted short sellers may attempt to pressure both MSTR and Bitcoin’s price ahead of the results. In another post on X, he speculated that “the usual defenders will come on TV and tell a real good story.”

The weekend’s cryptocurrency crash also prompted broader criticism from Cramer. While acknowledging he owns some Bitcoin, he said the volatility demonstrates its “unreliability” for short-term value exchange. On Stocktwits, retail sentiment around MSTR shifted to bearish as traders debated the potential outcomes of Saylor’s strategy.

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