Remember a week ago when CNBC’s Jim Cramer expressed his support for Bitcoin (BTC)? Well, it lost its momentum. And now that it just pumped to $47K, he’s telling people that it’s already topping. Applying the Inverse Cramer means it’s time to get your diamond hands ready people!
Bitcoin is Topping According to Jim Cramer
On the January 8 Lightning Round of Mad Money, Cramer was asked about what he thought of Bitcoin mining firms that are currently pumping, namely Riot Platforms and Marathon Digital. The host then asked, “What do we do with these?”
“Let’s stop fooling around,” he said in an emotionally fueled rant. “If you want Bitcoin, buy Bitcoin!”
“I think Bitcoin is topping around, by the way, so I’m gonna say enough is enough,” Cramer stated in a quick U-turn to his earlier statements. Just like that, he proceeded to smack the ka-ching button to wrap up his segment.
Is it Time to Play Inverse Cramer?
By now, those who are familiar with the cryptocurrency predictions of Cramer have noticed that the opposite scenario tends to play around. For example, when the analyst told people to “ignore crypto cheerleaders” during BTC’s resurgence to the $20K line last year, the digital asset actually went to a bullish trend.
There was, however, a change of tone from Cramer in November last year when he admitted that his calls towards Bitcoin were “premature.” Then he went on to tell people to buy BTC if they like it.
Post the New Year celebrations, he continued preaching about the premier cryptocurrency by market cap. “This thing, you can’t kill it,” Cramer told CNBC host David Faber.
“Bitcoin is a technological marvel and I think people need to start recognizing it’s here to stay,” he continued.
And guess what happened?
Bitcoin greeted 2024 with a bang as it surged to $45K. It was the first time in nearly two years for the crypto to reach such heights. As soon as Cramer’s remarks were made, BTC slumped back to the $41K territory.
For some, it may be another coincidence, but for others, it’s Inverse Cramer at play.
With that in mind, is his latest forecast a confirmation of Bitcoin’s further climb?
Inverse Cramer Probability
Inverse Cramer is a play the crypto community invented based on the projections of Jim Cramer. The mechanics of this is simple, you just do what the financial analyst says.
The coincidences of the opposite occurring, however, are so hard to ignore. So, when Seeking Alpha collated Cramer’s top 10 picks over a period at the end of 2022, it found that more often than not, the strategy yielded gains.
Quantifying this would mean a $100 million investment made in the past two years using Inverse Cramer would have resulted a compounded earnings of $147.20 million!
Final Thoughts
Despite what they say about Inverse Cramer, it’s still a risky play and if you don’t lay your cards right, you may end up losing a lot. Notwithstanding this, the consensus carries a bullish outlook for Bitcoin on the way to the anticipated approval of its spot ETFs in the US this week and the halving taking place by April.
As always, practice due diligence along the way because investing can be tricky with many factors in motion. What was presented here is never a 100% assurance of profits and investment advice, so ingest only the information provided with a grain of salt.