Cramer sees 'one more cathartic decline' in bitcoin as a buy sign to those who missed crypto craze

A representations of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken May 19, 2021.
Dado Ruvic | Reuters

CNBC's Jim Cramer said Monday he sees any next major decline in bitcoin, like last week's collapse, as a buying signal to investors who missed out at much lower levels.

"I actually think it's going to get to a level where people are going to come back in," said Cramer, who owns bitcoin and another cryptocurrency, ether. The "Mad Money" host has said he believes crypto can be used as one alternative to holding cash.

"People who missed it at $12,000 to $15,000 bitcoin, I think they're going to come back. I think they are going to wait one more cathartic decline. And they'll come back," he added.

Bitcoin bounced about 12% on Monday to around $37,000 after last week's wild ride extended into the weekend. The price of bitcoin plunged to less than $32,000 on Sunday. Last Wednesday, the world's biggest cryptocurrency saw a single-day collapse of as much as more than 30% to just above $30,000 per coin. Bitcoin hit an all-time high of nearly $65,000 in April.