Jim Cramer Calls Out Bitcoin's Volatility as Prices Drop to $74,000
By John Nada·Feb 2, 2026·2 min read
Jim Cramer raises concerns over Bitcoin's volatility as prices drop to $74,000, questioning its reliability as a short-term currency. Investors face critical market implications.
Bitcoin's recent slide to around $74,000 has raised alarms for investors and analysts alike. Jim Cramer highlighted the cryptocurrency's 'unreliability' as a short-term currency following a steep weekend drop. According to CoinDesk, this decline marks the lowest price level for Bitcoin since April 2025. Cramer questioned where the asset's most ardent supporters were as prices tested critical technical levels. He pointed out a potential support zone near $73,000, referencing strategist Jessica Inskip, while emphasizing that Bitcoin needs to reclaim the $77,000 threshold to serve as a 'launching pad' back toward the low $80,000s.
Cramer didn't hold back in expressing his concerns. He repeatedly invoked Michael Saylor, executive chairman of Strategy (MSTR), asking if the seasoned Bitcoin bull had 'dry powder' to buy more. Notably, Saylor hinted at his company’s recent Bitcoin purchases with a tweet stating 'more orange' over the weekend.
The decline serves as a stark reminder of Bitcoin's volatility. Cramer pointed out that this weekend's sharp price movement underscores its limitations as a reliable currency in the short term, despite his personal ownership of the asset. 'The demonstration of what can happen in a weekend with Bitcoin demonstrates its unreliability, on a short-term basis, to be a currency,' he stated.
Beyond Bitcoin, Cramer suggested that the broader crypto selloff is impacting risk markets. He argued that leveraged traders in metals and other speculative sectors often liquidate equities to generate cash when prices drop in one area. Yet, he advised investors to resist succumbing to 'jeremiads of destruction.' Instead, Cramer urged a focus on opportunities in stocks and corporate earnings, steering attention away from macro-driven distractions like Bitcoin or precious metals.
As for short sellers, Cramer speculated they may be pushing Bitcoin lower ahead of Saylor’s company reporting later this week. He warned that bullish narratives from 'the usual defenders' might not hold up if the price drop accelerates. This situation raises important questions for investors: with volatility at the forefront, how reliable can Bitcoin truly be as a store of value? Cramer’s insights reflect a growing caution in the market. The unfolding dynamics could signal a reevaluation of Bitcoin's role in investment strategies moving forward.