Jim Cramer’s Latest Bitcoin Endorsement Sparks Market Skepticism and Debate

The Cramer Effect: Bitcoin Drops 5% Following CNBC Host's Bullish Call

  • Jim Cramer’s recent bullish Bitcoin stance preceded a 5% price drop, reinforcing his reputation for contrarian market indicators
  • Bitcoin fell nearly $5,000 following Cramer’s endorsement, with long liquidations reaching $344 million
  • The CNBC host defended crypto’s place in investment portfolios despite lacking evidence of its effectiveness as an economic hedge
  • Some traders have developed an “Inverse Cramer” strategy, taking positions opposite to his recommendations
  • Cramer maintains his crypto support is tied to government spending concerns, though he may reverse his position if deficit issues improve

CNBC’s “Mad Money” host Jim Cramer’s recent positive stance on Bitcoin has once again demonstrated his unique influence on cryptocurrency markets – though not in the direction he intended. Following his bullish call on Friday, Bitcoin’s value decreased by 5%, erasing approximately $5,000 from its price point.

- Advertisement -

The market reaction triggered substantial losses for leveraged traders, with long liquidations exceeding $344 million, marking an 11-day high for forced position closures.

Defense and Rationale

During Tuesday’s broadcast, Cramer addressed his critics: “I got a bunch of yahoos saying I called the top on crypto by recommending it,” while dismissing references to his previous market calls from “10, 15, 20 years ago.”

His support for cryptocurrency investments stems from concerns about government spending and deficit levels, though he acknowledged the limited evidence supporting crypto’s role as an economic safeguard. “While there’s no proof crypto can protect you from anything, at least not yet, it’s a plausible story,” Cramer stated.

The “Inverse Cramer” Phenomenon

Cramer’s track record of market predictions has led to an unexpected development in trading circles – the “Inverse Cramer” strategy. This approach, adopted by some traders, involves taking positions contrary to Cramer’s public recommendations, based on his history of missed market calls.

Historical Context

The former hedge fund manager’s relationship with cryptocurrency has been inconsistent over time. His positions have ranged from celebrating Bitcoin profits substantial enough to purchase a farm to alternating between declaring cryptocurrencies worthless and asserting Bitcoin’s resilience.

Current Position

Cramer’s latest stance advocates for cryptocurrency inclusion in investment portfolios, specifically mentioning Bitcoin and Ethereum. However, he included a significant qualifier, indicating his position might shift if government deficit concerns diminish.

- Advertisement -

“I think Bitcoin, Ethereum, and maybe even some other cryptocurrencies deserve a spot in your portfolio, too,” Cramer stated, while maintaining that this recommendation is contingent on current economic conditions persisting.

Previous Articles:

- Advertisement -

Latest

American Engineer Drugged, Robbed in Sophisticated London Crypto Heist

An American software engineer lost approximately $123,000 in cryptocurrency after being drugged and robbed in London.The victim was targeted by an impersonator posing as...

Max Keiser Doubts New Bitcoin Treasuries’ Discipline in Bear Market

Bitcoin-focused companies are increasingly copying the treasury strategy used by Michael Saylor's Strategy.Max Keiser raised doubts about whether these newer companies can maintain commitment...

South Korea Election Puts Crypto Policy at Center of Debate

Nearly one-third of South Koreans hold digital assets, making crypto a vital issue in the upcoming presidential election.Both major parties support crypto exchange-traded funds...

Scottsdale Residents Lose $6M to Crypto Scams; Police Respond

Scottsdale residents have reported losing over $6 million to cryptocurrency Scams in 2024.Authorities say actual losses could be higher, as not all cases are...

Ethereum Bullish Patterns Signal Altseason, 55% Rally Possible

Ethereum is showing two bullish chart patterns against Bitcoin, indicating a possible 30–55% price increase. Crypto analysts say an ETH/BTC rally could spark a broad...

Must Read

Forex Trading Vs Crypto Trading: Which One Should You Choose?

So you're trying to decide between two types of trading: Forex and cryptocurrency.Forex trading is the big player in the trading world, with lots...