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Jim Cramer, host of “Mad Money,” recently commented on Bitcoin and Gold, which caused gossip in the crypto community. He has a history of making unpopular crypto recommendations, such as advising investors to sell their holdings before the Bitcoin price skyrockets, which has earned him the nickname “Inverse Cramer”. However, his recent negative remarks about Bitcoin were met with criticism from the crypto community, who saw it as a bullish sign for the cryptocurrency.
Market performance failed to support Cramer’s expectations
Jim Cramer recently made comments on Bitcoin and Gold which sparked a reaction in the crypto community. The host of the popular financial news show “Mad Money” on CNBC has a history of making incorrect predictions about cryptocurrency.
Cramer has been known to convince investors to sell their Bitcoin holdings before a major rally, and this phenomenon where events turn against expectations is referred to as the “Inverse Cramer.” Naturally, Cramer’s recent bearish comments invited some criticism from investors who interpreted it as a “buy signal” for Bitcoin.
In the latest episode of Mad Money, Cramer likened bitcoin to stocks of leading tech companies like Facebook and Google, which are part of the Nasdaq 100 stock index. He noted that BTC is no different from tech stocks and urged investors to explore gold as an alternative to cryptocurrency.
To support his argument, Cramer used a chart from DeCarley Trading that compares the performance of bitcoin futures to the Nasdaq 100, showing that both indexes began moving in parallel with each other in March 2021.
Cramer went on to say that bitcoin is neither a form of currency nor a secure store of value. This sentiment was echoed by Euro Pacific Capital CEO Peter Schiff, who is also an outspoken critic of the cryptocurrency sector and often advises investors to stay away from it. On January 12, he commented that Bitcoin’s rally above $18,000 at the time was an “excellent opportunity” for owners to sell their holdings, offering investment in gold as a better alternative.
However, investors who were unimpressed by these comments were rewarded as the price continued to climb in the following days, reaching a 5-month high of approximately $23,300 on January 21, which represented a 30% price increase from the day that made Schiff statment.
Currently, BTC is worth around $23,250, matching where it was a week ago. In contrast, Schiff, who is known to be a strong advocate of gold, expected gold to perform better in the current market, but it rose only 1.3% over the past ten days.
Kramer’s comments affect traders one way or another
The “Inverse Cramer” story is gaining traction in the crypto community after Jim Cramer made negative comments about Bitcoin. The narrative is based on the idea that when Cramer makes negative comments about a particular asset or investment, that asset or investment is likely to go up in value.
This is because many traders and investors in the crypto community believe that Cramer’s comments are ill-considered or premature. One of the main arguments against Cramer’s comments on Bitcoin is that the TV personality is simply out of touch with the current state of the crypto market.
Bitcoin and other cryptocurrencies have been on an upward trend since the start of 2023, with prices erasing the taint of losses suffered by the FTX stock market crash in November and revisiting 2022 highs. Cramer’s comments fail to explain the positive developments in cryptocurrency prices, The “Inverse Cramer” story is a reflection of the growing skepticism many traders and investors have about traditional financial experts and their ability to understand and analyze the cryptocurrency market.
Kramer’s comment on bitcoin was interpreted as a “buy signal” by Dan Held, crypto educator and marketing consultant at Trust Machines.Co. Investors also noticed the “inverse Cramer” listing in the US stock market as well. Kramer’s rise in the stock market could set the stage for a fall in stock prices.
Bitcoin’s correlation with the S&P 500 is relatively high in 2023, and falling stock prices could have a similar effect on cryptocurrencies. Binance CEO Changpeng Zhao also criticized Cramer’s recent predictions about the cryptocurrency, reminding the crypto community to “ignore FUD.” In addition, it is important to note that Cramer’s comments should be taken into account as his track record in predicting cryptocurrency prices is not particularly strong.
Will Jim Cramer’s Bitcoin Price Prediction Be Wrong Again?
Jim Cramer has always been making negative remarks about the cryptocurrency market, especially the Bitcoin price. He advises investors to exercise caution and suggests exiting industry-related investments due to regulatory uncertainty.
Cramer also called for an investigation by the US Securities and Exchange Commission and criticized the largest cryptocurrency trading platform, Binance, for its lack of legality. Despite the growing acceptance of cryptocurrencies among investors, there are still concerns about untrusted and unbacked digital assets in the industry.
Cramer has had mixed views on bitcoin in the past, sometimes viewing it as a potential hedge against inflation and other times expressing skepticism about its long-term prospects. Currently, he has a very skeptical view of cryptocurrencies as Bitcoin failed to act as a store of value in 2022, with investors losing 70% of their investment in the number one token.
While this retrospective data on Bitcoin’s price performance is, to some extent, designed to serve the narrative. They lack the necessary credibility when it comes to being consistent with Kramer’s comments.
Cramer was wrong about other coins too, such as when he called popular crypto projects like Solana and XRP “cons,” which later proceeded to increase the price by more than 40%. Cramer has had a history of being wrong and divisive in his stance on cryptocurrency, which suggests that he is likely wrong this time around, too. At least, that seems to be the case when we look at market metrics.
Referred to as a “phantom market” by Cramer, the cryptocurrency market cap has increased by 0.25% over the day and currently stands at 1.06 trillion. Bitcoin is currently trading at $23.2K, a level that is considered a comfortable support. Ethereum is also trading at around $1.6K.
The current market sentiment is positive among investors. When investing in cryptocurrencies, investors should consider the necessary facts and not be influenced by popular opinions.
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