Jim Cramer’s Bitcoin Call Triggers Crypto Selloff

Jim Cramer, the outspoken host of CNBC’s Mad Money, has inadvertently cemented his reputation as a crypto market “counter-indicator” after his bullish remarks on Bitcoin preceded a sharp market downturn.

Cramer’s Bullish Call and Market Reaction

On Friday, Cramer issued a bullish call on Bitcoin, citing concerns about government spending and the growing U.S. deficit. The declaration sent Crypto Twitter into a frenzy, with many dubbing his remarks a signal for an impending price drop.

By Sunday, Bitcoin’s price had fallen 5%, wiping out nearly $5,000 in value and driving long liquidations to an 11-day high of $344 million, according to CoinGlass.

“Inverse Cramer” Strategy

Cramer’s track record of poorly timed market calls has made him a living meme in the crypto community. Many traders subscribe to the so-called “Inverse Cramer” strategy, believing the key to profits lies in doing the opposite of his recommendations.

“I got a bunch of yahoos saying I called the top on crypto by recommending it,” Cramer said during Tuesday’s show, addressing the backlash.

He dismissed criticism as stemming from people wanting to “rake me over the coals for something I did wrong 10, 15, 20 years ago.”

Cramer’s Crypto Take: A Portfolio Spot with a Caveat

Despite the market reaction, Cramer defended crypto’s inclusion in investment portfolios:

“I think Bitcoin, Ethereum, and maybe even some other cryptocurrencies deserve a spot in your portfolio, too,” he said.

However, he acknowledged the lack of concrete evidence supporting crypto as a hedge against economic instability:

“While there’s no proof crypto can protect you from anything, at least not yet, it’s a plausible story.”

A Complicated Relationship with Crypto

Cramer’s stance on Bitcoin and other cryptocurrencies has oscillated wildly over the years.

• He once boasted about buying a farm with Bitcoin profits.
• At other times, he’s dismissed crypto as “worthless.”
• More recently, he declared that “nobody can kill Bitcoin.”

On Tuesday, he reiterated his support for crypto as part of a portfolio but added a caveat:

“I might change my tune if the deficit gets under control.”

Market Implications

Cramer’s remarks have underscored the unpredictable nature of the crypto market and highlighted his divisive role in shaping sentiment.

While Bitcoin’s recent dip may not be directly tied to his comments, his reputation as an unintentional contrarian signal continues to resonate among traders.