Jim Cramer, the energetic and often polarizing host of CNBC’s Mad Money, has developed quite the reputation amongst Bitcoin enthusiasts for his errant forecasts concerning the cryptocurrency. In an industry where predictions are as volatile as the market itself, Cramer’s record has ironically turned into an indicator of when not to sell for those tracking Bitcoin’s tumultuous ride.
His most recent blunder traces back to the aftermath of the FTX crypto exchange’s collapse in November 2022. With Bitcoin’s value slashed by half, plummeting below the $15,000 mark, the market was reeling. Yet, as the currency began to recuperate its losses a few months later, climbing to $24,000—a modest 4% uplift in a week—Cramer was swift to issue his now-notorious sell advice.
On a broadcast that has since been widely circulated by the parody account @CramerTracker, Cramer was vehement in his conviction that Bitcoin’s modest rally was the result of price manipulation, and he implored investors to sell into what he saw as a fleeting spike. “I would sell my Bitcoin right into this rally,” he firmly stated, disavowing his past belief in the digital asset with a definitive “Not here. Not now.”
The passage of time has not been kind to this piece of advice from Cramer. Quite the contrary—those who opted to go against his counsel and held onto their Bitcoin have seen substantial gains. From that pivotal $24,000 mark, the value of Bitcoin escalated by an impressive 80%. A hypothetical investor who defied Cramer’s sell recommendation and invested $100,000 in Bitcoin would now behold a portfolio valued at a staggering $180,000, translating to an enviable profit of $80,000 in under a year.
This pattern of inversing Cramer’s financial guidance has gained such traction that it has inspired an entire investment strategy. The Inverse Cramer Tracker ETF, cheekily betting against the CNBC host’s public pronouncements, has observed notable growth, recently reaching $22.07 and having touched an all-time peak of $26. This fund prominently features the ProShares Bitcoin Strategy ETF as its top investment and flaunts an impressive portfolio with assets worth approximately $3.1 million, including stakes in notable companies like PayPal Holdings Inc., AMC Entertainment Holdings Inc., and Dominion Energy Inc.
In an interesting turn of events, as November 2023 rolled around, Cramer revisited his stance on Bitcoin, this time throwing his support behind the cryptocurrency. His more recent musings have been in favor of Bitcoin investments, a pivot he describes as a correction of his “premature” judgments. This volte-face serves as yet another twist in the ongoing saga of Bitcoin’s complex narrative in the financial world, and a reminder of the unpredictable tides of market opinion.