A recidivist prophet? Jim Cramer, celebrity host Crazy money on CNBC, is in the news again. While he recently advised his viewers to integrate bitcoin and ethereum into their portfolios, the market immediately reacted…downward. Bitcoin’s drop on the same day as his statement again supports the “reverse Cramer effect” theory, according to which his recommendations often have the opposite effect. Back to our story of the day.
- Jim Cramer advised the integration of Bitcoin and Ethereum into wallets, which led to a 2% drop in Bitcoin.
- The “Cramer backfire” theory is gaining traction, suggesting that his advice often backfires on markets.
Cramer and Bitcoin: a compass that points south
Jim Cramer is not brilliant at first glance. Once a skeptic, he called cryptocurrencies “worthless” before finally admitting that he made significant profits from Bitcoin, even going so far as to say that he bought a farm with those profits.
However, his oscillating positions have earned him a reputation as an unwitting market barometer. His recommendations in favor of Bitcoin often coincided with sometimes violent corrections.
The concept“reverse Cramer”which has gone viral on social media, even includes betting against his advice, with investors rejoicing in the opportunities his statements would offer them.
For example, in December 2022, Cramer recommended selling Bitcoin as the market reached its lowest point. Shortly thereafter, Bitcoin began an unforgettable comeback.
Another example. In January 2024, he claimed that Bitcoin was peaking, suggesting an imminent selloff. The statement was met with skepticism from the community, with some seeing it as a potential bullish signal, given the history of incorrect predictions. And it was.
But let’s get back to our topic. Because yes! Jim Cramer has done it again.
Is Jim Cramer Causing BTC To Fall?
On the November 26, 2024 edition of his show, Cramer said:
“I think Bitcoin, Ethereum and maybe other cryptocurrencies deserve a place in your portfolio. »
The announcement comes against the backdrop of the US national debt exceeding $36 trillion, which Cramer says makes cryptocurrencies attractive. a hedge against an out-of-control federal budget. He also added:
“Maybe one day, if the deficit can be brought under control, I will change my mind. »
Despite his encouragement, Bitcoin lost 5% in 24 hours and leveled off $92,700well below its recent peak of almost $100,000. Some observers saw this decline as confirmation of the reverse Cramer effect.
Bitcoin and Jim Cramer: Farce
The idea that his advice consistently fails has become a running joke on Crypto Twitter. Traders even tried to create an exchange-traded fund (ETF) based on the idea of betting against his recommendations, although the project did not last.
But behind the humor lies a more serious question: How much influence does Cramer have on the markets? Its ability to attract attention to assets like Bitcoin is undeniable, but when it comes to Bitcoin, its credibility remains a matter of debate. And that’s what we have to remember here.
While Bitcoin flirts with the token bar $100,000it’s important to keep one reality in mind: there will be millions of “Cramers” – impromptu junk analysts and prophets – as cryptocurrencies continue to attract global attention. Everyone will go with their own prediction, often noisy and rarely enlightened.
But in the face of this cacophony, it’s better to stay focused. Let’s rely on the analysis of Wall Street veterans, those who carefully study the markets and rely on solid data. Let’s observe them graphsanalyze trends and make rational decisions.
And to Jim Cramer, let’s give him what he does best: entertain us. A little humor and irony never hurt.
