CNBC’s Jim Cramer on Thursday reflected on bitcoin‘s rapid ascent — and while he praised the currency’s value, he said it’s unwise not to also include stocks in a portfolio.
“While we could become the bitcoin network, especially since President-elect [Donald] Trump christened us as the bitcoin nation, I actually think there’s more to investing than just owning cryptocurrencies,” he said.
The cryptocurrency crossed the long-awaited $100,000 threshold on Wednesday, at one point up more than 140% this year. Cramer said he’s been in favor of bitcoin for years, calling it an alternative to gold — an asset that can be used as a hedge against precarious government spending as the deficit balloons.
Bitcoin was a hot topic during the 2024 presidential election and was embraced by Trump, who made big promises to the crypto industry on the campaign trail. In July, Trump spoke in Nashville at the largest bitcoin conference of the year. He vowed the U.S. would hold on to its bitcoin assets and said, “if crypto is going to define the future, I want it to be mined, minted and made in the USA.”
On Wednesday, Trump posted to his Truth Social platform that he intends to nominate crypto advocate Paul Atkins to head the Securities and Exchange Commission. Atkins is expected to strike a more relaxed regulatory tone than current SEC Chair Gary Gensler, who has led the government’s efforts to crack down on the crypto industry.
Cramer listed several stocks that, like bitcoin, have had huge gains on the market this year, including Palantir, Tesla, Costco and Nvidia. He reiterated his mantra that it’s always important to have a diversified portfolio.
“I say own them both — stocks and crypto,” Cramer said. “That way, if Trump ever gets around to saying you have to buy Tesla, well, you got the edge on him.”
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia and Costco.
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