Is Bitcoin Headed for a Bearish Trend?
In a characteristic rant on CNBC’s Squawk on the Street show on Tuesday, famous financial pundit Jim Cramer proclaimed that he can’t be invested in Bitcoin (BTC) – “Mr Bitcoin is about to go down big.” It’s unclear whether this was a reference to the Bitcoin price itself or to disgraced ex-FTX CEO Sam Bankman-Friend, who is currently on trial for alleged financial crimes committed during his time as head of the ill-fated exchange. Regardless, Cramer remains bearish, a position he has held since selling most of his holdings in 2021 following China’s crackdown on mining.
Bitcoin was last trading in the mid-$26,000s, down nearly 3% for the day amid concerns about hotter-than-expected US inflation data and the ongoing Israel/Palestine conflict, as well as following a break below an uptrend that had been in play for nearly one month.
However, some perceive Cramer’s newfound bearishness as a potential indication that Bitcoin may have reached its near-term bottom. This is due to Cramer’s reputation for making inaccurate market calls, which has garnered attention and caused some to view his market views as a counter-indicator.
Cramer’s History of Bad Market Calls
Over the years, Cramer has made several high-profile market calls that turned out to be incorrect. In 2012, he advised viewers to exit Netflix and Hewlett-Packard, but both stocks surged over 100% in the following months. Similarly, in 2015, Cramer gave buy ratings to Kohl’s Corp and Qorvo, both of which experienced near-term losses.
While Cramer’s track record of market predictions may be marred by these notable misses, it is important to note that he has made thousands of stock calls throughout his career. Comparatively, his overall performance may not be worse than that of other financial pundits.
An inverse Cramer ETF, which seeks to provide opposite results to Cramer’s recommended investments, has performed poorly over the last six months, indicating that blindly following his advice may not be a wise strategy.
Cramer’s Influence on Crypto Investors
For serious crypto investors, considering Jim Cramer’s stance in their investment decisions may not be advisable. His market views should not be taken as an accurate reflection of the cryptocurrency market, nor should he be used as a counter indicator. It is essential for investors to conduct their own research and consult reliable sources when making investment choices.
