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Morning Bell With Jim Cramer: Amazon Wins, Bitcoin Struggles

Jim Cramer talks stock market news, including Amazon's Prime Day and Bitcoin's troubles with China.

Stock futures turned higher Tuesday ahead of testimony from Federal Reserve Chairman Jerome Powell.

TheStreet.com Founder Jim Cramer shared his thoughts with Katherine Ross about Amazon  (AMZN) - Get Report, which kicked off its two-day Prime Day shopping event on Monday. 

Amazon: COVID Winner

Cramer noted that while some people have said the e-commerce giant may have trouble delivering Prime Day orders, "the one thing we know about Amazon is they're geniuses at any sort of infrastructure."

"They will get it to you," he said, "so I'm not worried about that."

Amazon this year brought forward its seventh annual two-day shopping event, hoping to spark a spending boost in a traditionally quiet June.

"I think Prime Day is more talked about this year than at any time I've seen," Cramer said. "A lot of us have held back buying things until Prime Day. That is something new."

Cramer said that Amazon was "one of the few winners" to come out of the COVID-19 pandemic. 

"Amazon won in COVID," he said. "It's winning now."

J.P. Morgan analysts expect gross merchandise value at the Seattle company to rise 10.4% from last year to around $11.6 billion. That figure would add around $6 billion in revenue to Amazon's overall second-quarter tally.

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Bitcoin: 'The PRC has spoken'

Cramer turned his attention to Bitcoin, which slid below $30,000 on Tuesday, a key support level and its lowest since late January. 

China has amped up its crackdown, all but banning transactions in digital currencies in the country.

"I think the PRC has spoken," Cramer said. "They’re cracking down on Bitcoin. And when they say there shouldn’t be so much money on Bitcoin and so much mining, then Bitcoin goes down. Isn’t that curious?"

The People’s Bank of China on Monday told the country’s major financial institutions to stop facilitating virtual-currency transactions, increasing the negative sentiment in crypto markets.

"You would think if they limited the amount of mining, it would actually go up," Cramer said. "What this tells me is that there’s a considerable number of people who are dumping Bitcoin because they fear the PRC."

Banks are banned from providing products or services such as trading, clearing and settlement for crypto transactions, the PBOC said

"The PRC, I think, feels that they're not in control of Bitcoin, that billionaires in America are in charge of Bitcoin," Cramer said. China doesn’t like "the billionaires calling the shots for a second currency in China."

Bitcoin has been used to pay ransomware and Cramer said he expected the Federal Reserve and the Treasury Department to put a stop to this practice and "put an end to the way ransomware has made Bitcoin far more important."

"I’d be very careful with Bitcoin," Cramer said. "I do think it's going to be rocky for Bitcoin for a long time."

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