Market expert Jim Cramer has long been considered a crypto skeptic. This has now apparently changed, as the former hedge fund manager is now adopting a completely different tone.
• Jim Cramer actually a crypto skeptic
• Market expert turns crypto bull
• Does Cramer remain true to his reputation as a contrarian?
Jim Cramer, who now comments on current market events as a TV personality after working as a hedge fund manager, has repeatedly shown a bearish attitude towards cryptocurrencies, especially Bitcoin, in the past. Just a few weeks ago, the market guru warned of a crash for the crypto veteran: “I can’t stay with gold because gold is not good; I can’t go with Bitcoin because I can’t be invested in something where Mr. Bitcoin falls sharply will,” said Cramer in October 2023.
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Although Cramer was part of the crypto community himself a few years ago, he monetized his Bitcoin shares in 2021 after he identified structural problems with the cryptocurrency and mining of the cyber currency was restricted in China.
Cramer suddenly becomes bullish
Just a few weeks later, the TV expert took a much more moderate tone when he talked about the world’s oldest cryptocurrency. The price increase on the market – after all, with an increase of around 127 percent since the start of the year, Bitcoin has clearly eclipsed numerous other investment options – has apparently caused Cramer to rethink. His latest advice to market participants is that they should reconsider their positions.
On CNBC’s “Mad Money” show, he admitted that his assessment of Bitcoin was “premature.” When asked by a caller on the show who wanted to know whether one should add shares of the Bitcoin miner CleanSpark to their portfolio, Cramer replied: “Listen, if you like Bitcoin, buy Bitcoin. I’ve always had that opinion. And I liked it for a while and thought that all the money had already been earned, but I was obviously too hasty.”
Cramer as a counterindicator?
The fact that Cramer changed his mind about Bitcoin within a few weeks, after he had already changed sides in the dispute between crypto fans and crypto skeptics in the past, is also causing criticism – not only within the crypto community.
The success rate of Cramer’s investment tips has been so controversial for some time that Cramer’s investment recommendations are regularly published on the X account @CramerTracker in order to give investors the opportunity to position themselves in the opposite direction. The investment company Tuttle Capital Management has even launched two actively managed ETFs called “Inverse Cramer ETF” and “Long Cramer Tracker ETF”. The former touts the promise: “The Inverse Cramer Tracker ETF (the “Fund”) seeks to achieve investment results that, before fees and expenses, are approximately the opposite of the results of the investments recommended by television personality Jim Cramer.” The “Long Cramer Tracker ETF” has now been closed again, but investors can continue to bet on the ETF that shorts the investments recommended by Cramer. However, the product has not been particularly successful so far: the ETF has lost around ten percent of its value since its launch.
Bitcoin has different drivers than Cramer
It remains to be seen whether Cramer’s turn into a Bitcoin bull will help the original cryptocurrency get on its feet or whether crypto investors will have to worry if the TV presenter, known as a crypto indicator, recommends buying their own investment. But the fact is that the crypto community is currently relying on other price drivers than the ex-hedge fund manager.
The hope of the approval of a Bitcoin spot ETF has been one of the reasons for the Bitcoin price rally for weeks. Added to this is the upcoming Bitcoin halving, although experts warn that any positive price effects resulting from a shortage of Bitcoin supply may already have been priced in.
Nevertheless, Bitcoin is one of the top investments in 2023: in the last three months alone, the price of the cryptocurrency has increased by around 38 percent. A Bitcoin is currently trading just below the $38,000 mark, but was able to surpass the important price mark a few days ago, marking the highest level since May 2022.
Editorial team finanzen.net
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