Jim Cramer Calls Bitcoin & Ethereum a Hedge Against US Debt

• Cramer said people want to hold Bitcoin and Ethereum to guard against rising US debt.
• He sees crypto as a legacy choice and not just for quick trading or risky gains.
• Bitcoin dropped this week while Ethereum rose as investors moved based on fresh belief.

Jim Cramer, CNBC host and former hedge fund manager, said on CNBC that he is buying Bitcoin due to concerns over U.S. debt. The national debt now stands at $37.8 trillion and continues to rise. Cramer described Bitcoin and Ethereum ownership as a generational hedge against the mounting fiscal burden. “They want to own it for their kids,” Cramer said, referring to long-term holders seeking safety beyond traditional finance.

Crypto Custody and Institutional Shifts Gain Attention

Cramer discussed secure storage methods, citing cold wallets and air-gapped options as essential in the event of a financial crisis. During the segment, he dismissed the notion that Bitcoin is merely speculative, asserting its role in protecting value. He told CNBC, “I think it’s just a nice hedge—I’m afraid… I’m just very worried about my kids.”

He also pointed to changing institutional sentiment. Cramer cited JPMorgan’s involvement in lending against crypto as proof of evolving Wall Street behavior. While Mastercard CEO Michael Miebach has expressed doubt in broad consumer demand, Cramer insists Bitcoin remains attractive. He reiterated that people want to trade it and hold it, particularly amid concern for economic sustainability.

Cramer also acknowledged generational divides and long-term thinking. He linked his support for Bitcoin to fears that the U.S. cannot grow out of its debt. “We can’t grow our way out of this,” he said, suggesting crypto assets offer a rare exit from legacy liabilities.

Diverging Market Movements in BTC and ETH

As of press time, CoinMarketCap data showed Bitcoin (BTC) trading at $117,874.91, reflecting a 0.65% weekly decline. Its market capitalization remains strong at $2.34 trillion, supported by $69.54 billion in 24-hour volume. Bitcoin’s circulating supply has reached 19.89 million BTC, nearing the capped supply of 21 million.

Ethereum (ETH), meanwhile, has posted gains. It trades at $3,577.83, showing a 4.12% weekly increase, with a market cap of $431.88 billion. The daily trading volume for ETH was recorded at $40.18 billion. Its total and circulating supply both remain at 120.71 million ETH, showing stability in token distribution.

The statistics also demonstrate that there is a disparity between BTC performance and ETH. The phenomenon indicates a change in the mood of investors and different assets’ responses to macro factors and liquidity levels in the market.

Related: MARA Raises $850M to Repay Debt and Buy More Bitcoin

Is Crypto Now a Generational Hedge or Temporary Shelter?

Cramer’s public comments frame Bitcoin and Ethereum as tools for securing financial futures against ballooning national liabilities. His remarks reveal a notable shift from crypto’s speculative narrative toward positioning as strategic hedges. The $37.8 trillion U.S. debt, worsened by policy initiatives like Trump’s “Big Beautiful Bill,” has added urgency to that view.

However, even though traditional finance executives continue to doubt, Cramer is not the only one in the new wave of legitimacy of digital assets. The fact that he positions Bitcoin and Ethereum as defensive assets may appeal to the long-term investors who want to achieve stability. However, analysts warn that Cramer has a patchy track record as a trader, and this begs further scrutiny in terms of timing and motive.

Nonetheless, with Bitcoin down a bit and Ethereum up, the market is indicative of a mixed reaction of fear, hope, and prospective planning. The manner in which investors are acting in a climate where budget deficits continue to swell can be summed up in a simple question: Will these assets be a temporary shield or pillars for future generations?

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