After falling from roughly $2,440 to $2,175 in just a few days, Bitcoin prices are back in rally mode. The digital currency now trades above $2,900, up more than 57% in less than a month and nearly 200% in 2017. So why is this rally so intense? According to TheStreet's founder Jim Cramer and manager of the Action Alerts PLUS portfolio, it may be due to the rise of cybercriminals. After speaking with Citrix Systems (CTXS) CEO Kirill Tatarinov on Monday at TheDeal's Corporate Governance Conference, Cramer came away with the understanding that Bitcoin is becoming more popular in Europe. When cybercriminals hit corporations with ransomware attacks, they are basically locking up digital information or data. In order to unlock the encryption, companies are forced to pay a ransom and the cybercriminals only want Bitcoin due to its untraceable and anonymous features. While some of the Bitcoin craze may be driven by speculation, there is reason to believe there are real buyers out there looking to secure Bitcoins for ransomware attacks, Cramer reasoned.
And this is coming from Citrix, which as investors know, isn't comprised of a "bunch of jokers," he said, "they're serious."
Meanwhile, shares of Advanced Micro Devices (AMD) surged about 8% on Tuesday after the chipmaker said that the recent robust demand for Bitcoin along with other cryptocurrencies has been driving sales of its graphics cards.
"The gaming market remains our priority. We are seeing solid demand for our Polaris-based offerings in the gaming and newly resurgent cryptocurrency mining markets based on the strong performance we are delivering," an AMD spokesperson told CNBC.
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