CNBC’s Jim Cramer on Tuesday defended his stance on cryptocurrency, saying he endorses owning some as a hedge against government spending and a ballooning deficit, as “national debt worries are never going to go away.”

“I’ve liked crypto for a very long time, mostly because I know there’s a huge constituency of investors who want to buy something that can protect them from our government’s busted budget,” he said. “While there’s no proof crypto can protect you from anything — at least not yet — it’s a plausible story…Let’s just say sometimes that’s all you need in this business.”

Some on Wall Street believe that due to cryptocurrency’s fixed supply, it will be a solid asset in the event that continued excessive federal spending — and a widening U.S. national debt — devalues the dollar. Cramer said the hedging argument makes sense to him. However, he acknowledged that cryptocurrency is also fairly new and doesn’t yet have a proven track record.

Cramer expressed skepticism that the government will be able to solve the debt issue any time soon. Legislators may have the ability to balance the budget he said, but they “lack the political will to do things that are unpopular.” Solving the problem, he said, means making difficult decisions to raise taxes or cut spending. He continued, saying that many politicians are inclined to leave the issue for their successors.

“I think bitcoin, ethereum and maybe even some other cryptocurrencies deserve a spot in your portfolio, too,” Cramer said. “Maybe, one day, if the deficit gets under control, I’ll change my tune.”

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Bitcoin breached the $98,000 level for the first time Thursday as investors continued pricing in a second Donald Trump presidency.

The price of the flagship cryptocurrency was last higher by more than 4% at $98,187.00, according to Coin Metrics. Earlier, it rose as high as $98,367.00.

Crypto exchange Coinbase advanced 3% in premarket trading while MicroStrategy, which trades as a bitcoin proxy, jumped 11%. Mining stocks rose as well, with Mara Holdings up 9%.

Bitcoin has been regularly hitting fresh records this month on hopes that Trump will usher in a golden age of crypto, which would include more supportive regulation for the industry and a potential national strategic bitcoin reserve or stockpile.

“Looking back at previous moves of this magnitude, BTC has historically either gone into a consolidation period, or ignored the overbought condition as investors pile in,” Rob Ginsberg, an analyst at Wolfe Research, said in a Wednesday note.

“Being that we are just breaking out of one of those long consolidation periods, and price is currently at a new high … something tells us the chase is on,” he added. “The real test will come when the major psychological level of $100,000 is likely hit in coming weeks” — and could hit as soon as Thursday.

Another Trump term also implies larger budget deficits, potentially more inflation and changes to the international role of the dollar – all things that would have a positive impact on the price of bitcoin.

Bitcoin has gained more than 165% in 2024.