Jim Cramer Identifies 'Major Reason To Buy Bitcoin'

Bitcoin BTC/USD is surging to new five-month highs Wednesday and Jim Cramer believes a buy signal was flashed when Treasury Secretary Janet Yellen spoke in a televised appearance on CNBC.

"The Janet Yellen discussion on air yesterday was a major reason to buy Bitcoin," Cramer said Wednesday on CNBC's "Squawk On The Street."

Yellen dismissed the idea of minting a $1 trillion coin in an effort to help the United States pay its debt. Despite her opposing comments, Yellen reaffirmed how critical it is that the U.S. acts to raise or suspend the debt ceiling.

Related Link: Is Bitcoin a good investment in 2021?

The Treasury Secretary expects the U.S. will fall into a recession if lawmakers fail to raise or suspend the debt ceiling before Oct. 18.

"If you parse what she's saying and if it comes true, the dollar doesn't seem to be as valuable as crypto," Cramer said.

Cramer sold his Bitcoin position earlier in the year, but later announced he invested in Ethereum ETH/USD. He did not provide an update on his crypto holdings Wednesday.

BTC Price Action: Bitcoin was up 9.17% at $54,373 at time of publication.

Photo: Eivind Pedersen from Pixabay.