The last few weeks have seenn crypto markets fall across the board. This has left many analysts and market participants wondering what may be the cause. While the crash might just be the product of a normal bear market, speculations have continue to pile up.
Recent allegations by Jim Cramer on CNBC’s Squawk Box have triggered market attention too.
What did Jim Cramer say?
After Bitcoin‘s price fell below the realized price of $79.1k, it was termed as a rare “Black Swan” event. However, Jim Cramer looked at the move to $60k with optimism. On an episode of CNBC Live’s Squawk Box, Jim Cramer said that the U.S government is now buying Bitcoin. According to the analyst,
“I heard at $60k he’s gonna fill the Bitcoin Reserve you better cover.”
For its part, the crypto community did not take the rumour mongering seriously, with some labeling Cramer as a joker.
Some even claimed that he might be confusing Strategic Reserve and Strategic Holdings. Given the absence of established rules for the Bitcoin Strategic Reserve, the latter might just be more plausible.
Here, it’s worth pointing out that Cramer’s assertion also lacks on-chain backing. Needless to say though, the statement led to many looking at the market differently.
A hike in market confidence?
For instance, the odds of a potential rate cut for the 18 March FOMC meeting rose by 5%. As per data from CME Group, the probability climbed from 18% to 23.2% during the weekend.
Usually, such growth is illustrative of confidence among traders and investors. This is because they can borrow more to pour into risk-on assets for lower interest pay. The result is bullish for Bitcoin and the rest of crypto.
Source: CME Group
However, the figures were still very low, suggesting that a rate cut decision remains difficult. In the past, when they went through, the probability was in the 80th percentile or more.
That brings us to the big question – Do these allegations lend more weight to the significance of BTC’s $60K-level?
Any key levels to watch?
Bitcoin’s price charts revealed an aggressive bounce after hitting $60,000. The importance of the zone was proven by the association with the U.S government buying price at a psychological level.
Moreover, this order-block zone initiated the rally that saw BTC hit a high of $126k in 2025. Also, it was the nearest bullish liquidity swing.
Source: BTC/USD on TradingView
However, the RSI divergence indicator indicated that bear pressure was still present. This increased the likelihood of breaking below this zone.
On the contrary, the Bitcoin Mayer Multiple hit a value of 0.6. This implied that BTC was undervalued, and a bounce could be on the cards. This finding seemed to be perfectly aligned with expectations of upside from the world’s largest crypto.
Source: CryptoQuant
While it did not affirm a price bottom, it hinted that the risk approach might be changing as the markets absorbs fear.
Such episodes happened during bear markets’ bottoms in December 2018, March 2020, and November 2022. Each time, a strong rebound followed suit.
Final Thoughts
- Jim Cramer believes that the U.S government bought Bitcoin at $60,000.
- Bitcoin seems to be trading above a reversal point as the crypto market absorbed panic over the last few weeks.