Will Jim Cramer’s Bitcoin Price Prediction Go Wrong Again?

Jim Cramer, the host of “Mad Money,” recently commented on Bitcoin and Gold, prompting comments in the crypto community. He has a history of making unpopular crypto recommendations, such as advising investors to sell their holdings before the price of Bitcoin skyrocketed, earning him the nickname “Reverse Cramer.” However, his recent negative comments on Bitcoin were met with criticism from the crypto community, who saw it as a bullish sign for the cryptocurrency.

Market performance does not support Cramer’s predictions

Jim Cramer recently made comments about Bitcoin and Gold that sparked a reaction in the crypto community. The host of the popular financial news show “Mad Money” on CNBC has a history of making incorrect predictions about cryptocurrencies.

Cramer has been known to convince investors to sell their Bitcoin holdings ahead of a big bull run, and this phenomenon where events turn out to be the opposite of predictions is popularly known as “reverse Cramer”. Naturally, Cramer’s recent bearish comments drew some criticism from investors, who interpreted it as a “buy signal” for Bitcoin.

On the latest episode of Mad Money, Cramer compared Bitcoin to stocks of leading tech companies like Facebook and Google, which are part of the Nasdaq 100 stock index. He suggested that BTC is no different from stocks of tech companies and urged investors to explore gold as an alternative to cryptocurrencies.

To back up his argument, Cramer used a chart from DeCarley Trading that compares the performance of Bitcoin futures against the Nasdaq100, showing that both indices started moving in parallel in March 2021.

Cramer went on to say that Bitcoin is not a form of currency or a secure store of value. This sentiment was echoed by Euro Pacific Capital CEO Peter Schiff, who is also a vocal critic of the cryptocurrency sector and often advises investors to stay away from it. On Jan. 12, he commented that bitcoin’s rise above $18,000 at the time was an “excellent opportunity” for HOLDERS to sell their holdings, presenting investing in gold as the next best thing.

However, investors who were not swayed by these comments were rewarded as the price continued to rise in the following days, reaching a 5-month high of nearly $23,300 on January 21, representing a 30% price increase. % since the day Schiff made his statement.

Currently, BTC is worth approximately $23,250, in line with the value from a week ago. By contrast, Schiff, who is known to be a big supporter of gold, expected gold to do better in today’s market, but it is up only 1.3% in the last ten days.

Cramer’s comments influence traders one way or another

The “Inverse Cramer” narrative is continually gaining momentum in the crypto community after Jim Cramer made negative comments about Bitcoin. The narrative is based on the idea that when Cramer makes negative comments about a particular asset or investment, that asset or investment is likely to increase in value.

This is because many traders and investors in the crypto community believe that Cramer’s comments are misinformed or premature. One of the main arguments against Cramer’s Bitcoin comments is that the TV personality is simply out of touch with the current state of the crypto market.

Bitcoin and other cryptocurrencies have been in a bull run since early 2023, with prices erasing the stain suffered by losses due to the FTX crash in November and returning to 2022 highs. Cramer’s comments do not take into account the positive developments in cryptocurrency prices, and the “reverse Cramer” narrative is a reflection of the growing skepticism that many traders and investors have about traditional financial experts and their ability to understand and analyze the cryptocurrency market.

Cramer’s comment on Bitcoin has been interpreted as a “buy signal” by Dan Held, a cryptocurrency educator and marketing advisor at Trust Machines.Co. Investors have also noted the “reverse Cramer” narrative playing out in the US stock market as well. Cramer’s optimism in the stock market could pave the way for a fall in stock prices.

Bitcoin’s correlation to the S&P 500 is relatively high in 2023 and a drop in stock prices could have a similar impact on cryptocurrencies. Changpeng Zhao, the CEO of Binance, also criticized Cramer’s recent crypto prediction, reminding the crypto community to “ignore FUD.” Furthermore, it is important to note that Cramer’s comments should be taken with a grain of salt, as his track record in predicting cryptocurrency prices is not particularly strong.

Will Jim Cramer’s Bitcoin Price Prediction Go Wrong Again?

Jim Cramer has always made negative statements about the cryptocurrency market, particularly about the price of Bitcoin. He advises investors caution and suggests abandoning industry-related investments due to regulatory uncertainty.

Cramer also called for an investigation by the US Securities and Exchange Commission and criticized the largest cryptocurrency trading platform Binance for lacking legitimacy. Despite the growing acceptance of cryptocurrencies among investors, concerns about unreliable and unbacked digital assets persist in the industry.

Cramer has had mixed views on Bitcoin in the past, sometimes viewing it as a potential hedge against inflation and other times expressing skepticism about its long-term prospects. Currently, he has a very skeptical view of cryptocurrencies, since Bitcoin did not act as a store of value in 2022, when investors lost 70% of their investments in the number one token.

While these statements are retrospective on Bitcoin price performance, and to some extent designed to serve a narrative. They lack the necessary credibility when it comes to consistency with Cramer’s comments.

Cramer was wrong about other coins as well, such as when he labeled popular crypto projects like Solana and XRP as “Cons”, which he then set out to increase by more than 40% in price. Cramer has had a history of being wrong and divided on his position on cryptocurrencies, which suggests that he is most likely wrong this time as well. At least, that is what seems to be the case when we look at the market metrics.

Dubbed the “fake market” by Cramer, the cryptocurrency market capitalization has seen a 0.25% rise over the day and currently sits at 1.06 trillion. Bitcoin is currently trading at $23.2k, a level considered as comforting support. Ethereum is also trading at around $1.6k.

The current market sentiment is positive among investors. When investing in cryptocurrencies, investors must take into account the necessary facts and not be swayed by popular opinions.

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