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There’s an oft-repeated mantra among crypto traders: Do the opposite of whatever markers commentator Jim Cramer says.
So when the former crypto critic walked back on years of putting down Bitcoin on Friday by calling it a “winner” amid a hot streak that saw the price of the world’s largest crypto by market cap rise to near $100,000, pundits saw a pullback on the horizon.
Inverse Jim Cramer Effect
In a Nov. 22 segment of Mad Money’s Lightning Round, Jim Cramer responded to a Florida-based investor who inquired about buying shares of Bitcoin holder MicroStrategy, saying that Bitcoin (BTC) is a more attractive investment.
“I’ve got to tell you it’s a Bitcoin play — I prefer to actually own Bitcoin,” Cramer stated of MicroStrategy, adding that the prominent investment company Citron Research revealed a short position in the firm earlier this week. “All I can tell you is, own Bitcoin. That’s a winner.”
After Cramer’s statements, the Bitcoin price cratered from its recent all-time high of $99,645 to as low as $96,556. In the last month, the coin has steadily climbed 42.6%.
Did Cramer’s Statements Cause The Sharp BTC Fall?
Cramer, who disclosed that he purchased a farm and boat after liquidating most of his Bitcoin and Ether cache in 2022, turned bullish on BTC earlier this year. In January, he admitted that Bitcoin couldn’t be killed while describing its resilience in the face of regulators as a “technological marvel” that is “here to stay.”
Despite his embrace of the top crypto, observers didn’t fail to single out Cramer’s recent positive comments in hindsight as a sign of plunging prices. Cramer has an internet-famous track record of backfiring takes at key moments.
“In other words, the bull market just signed its death certificate,” crypto analyst Jacob King posited. “I’m maxing out 48 lines of credit and shorting [Bitcoin] with my life savings.”
Interestingly, the price of BTC dropping after Cramer’s latest remarks has also caught the attention of Tesla CEO and the world’s richest man, Elon Musk. Musk acknowledged the power of the CNBC host’s picks moving in the opposite direction he touts.
At the time of writing this, Bitcoin was trading for $96,417, marking a 2% drop on the day.