After pumping up over the past two months, Bitcoin (BTC) is now teasing the $40K line. Surprisingly, another one of the guys who kept bashing the cryptocurrency revealed he’s been a part of the bullish bandwagon all along, and that’s Jim Cramer. Considering many of his key predictions are often turning out to be the opposite, is the digital asset doomed?
Jim Cramer Revises Stance on Bitcoin
Over the years, Mad Money host Jim Cramer has never been shy about lashing at Bitcoin. He often questioned its acceptance as currency and its reliability as a store of value. Early this year, he urged investors to “ignore crypto cheerleaders” and bet on gold instead.
Fast-forward to the present, Cramer admitted he made a mistake about BTC. His change of tune came with a statement that it was “premature” for him to recommend selling the coin.
“Look, if you like Bitcoin, buy Bitcoin. That has always been my view. And for a while, I liked it, and I decided that money had been made, but I was premature,” Cramer told Mad Money viewers on Wednesday.
He’s Betting on Bitcoin All Along!
Now, here’s another plot twist. It turned out despite his negative comments on Bitcoin and telling people to stay away from it, Cramer admitted to having invested in it. In reality, the analyst said he “made a lot of money” from his investment in BTC.
Are We Doomed?
Critics of Cramer are now jokingly telling the crypto community that Bitcoin may be done for, referencing to the Inverse Cramer phenomenon. For context, the Inverse Cramer was coined by people displeased with the forecasts of the media personality, especially when it involved their favorite stocks or cryptos. It was so popular that even Elon Musk took a jab at this when he was replying to the social media post of Dogecoin co-creator Billy Markus.
It involves betting against every projection made by Cramer. So, for instance, if he tells people to sell Bitcoin, one must buy the asset instead.
Some investors claimed to have made considerable profits from the application of the method, and other dedicated investors even put up a website called Inverse Cramer ETF to monitor every forecast made by the host.
A previous study of Seeking Alpha tried to put this theory to the test by studying Cramer’s top 10 choices over a period, and then applying the Inverse Cramer strategy under certain conditions. The result was nothing short of impressive because the findings said if one had invested $100 million in the past two years using the technique, it would have compounded to $147.20 million as of January 2023.
This unorthodox system, however, is not a reliable strategy, particularly in the existing setting wherein the charts and traditional institutions are now aligning towards a bullish scenario for BTC.
Final Thoughts
It looks like Jim Cramer has been pulling an Inverse Cramer on himself all this time! While he was badmouthing Bitcoin in the media, he was actually investing in it secretly.
I guess this development marks another win for Bitcoin.