Jim Cramer Recommends Bitcoin As A Hedge For Investors Rattled By Moody's Downgrade But Says, 'Fear Is What Must Be Tamed'

Jim Cramer says if Moody's U.S. debt downgrade has you nervous, probably just grab some gold or Bitcoin BTC/USD instead, if you must.

What Happened: The "Mad Money" host framed the metals-and-crypto pairing as the simplest hedge against Washington's ever-swelling tab, reported CNBC. Cramer reminded viewers that the market also swooned after S&P's 2011 and Fitch's 2023 downgrades, only to recover. "Fear is what must be tamed, if you want to be a good investor," he said Monday.

Reading Friday's late-day notice as a sell signal is "a mistake," he warned. "You are being given an early warning to invest more, not more aggressively, but more of what you can save. That's the real hedge if you're worried about the government's creditworthiness, not the ‘get out now.'"

Cramer added a sharp jab at perennial doomsayers: "The people who write these are either fools who know nothing or incredibly shrewd short sellers who really need to spread fear because of their business model."

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His suggested hedges have already caught a bid: spot gold rose early on Monday, and Bitcoin above $105,000 after a Senate vote advanced a stablecoin bill.

Why It Matters: U.S. markets mostly shrugged off Moody's cut to America's last triple-A badge. The S&P 500 hovered at Friday's close, the Dow eked out gains for a sixth straight session, and small-caps lagged. Thirty-year Treasury yields spiked above 5% before buyers yanked them back to 4.95%, while the dollar index slipped 0.6% and energy shares led the day's modest losers as crude dipped and natural-gas prices sank 6%.

Beyond the immediate price action, the downgrade rekindled worries that chronic U.S. borrowing could chip away at the dollar's reserve-currency crown. Meanwhile, economist Peter Schiff took Treasury Secretary Scott Bessent to task for pinning the blame solely on former President Joe Biden, insisting that Trump-era tax cuts and bipartisan spending excess paved Moody's path to the axe.

Price Action: At the time of writing, Bitcoin traded 2.12% higher at $105,647.95. Spot Gold was seen 0.52% lower at $3,212.29. June 2025 Gold COMEX Futures were down 0.54% at $3,216.20.

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