"I would go back in if I could get it at $10,000, $11,000, $12,000 - where I bought a lot [before]," Cramer said during Tuesday's Squawk Box.
From May 17 to May 24, bitcoin holders realized net losses of $2.56 billion according to data from the blockchain analytics firm Glassnode.
Jefferies' global head of equity strategy is still bullish on crypto, though he added there is room for debate about which assets should be owned.
US stocks finished well off their intraday lows as investors digested the Fed's minutes and concerns over inflation.
"Some of the new crypto market entrants are about to have their first taste of risk management," said a cryptocurrency analyst as Bitcoin's price has recently plunged.