Jim Cramer warns investors to stay away from crypto: another buy signal for Bitcoin?

  • Jim Cramer, host of CNBC’s MadMoney urges crypto traders to stay away from Bitcoin now that the cryptocurrency is “bouncing.”
  • Cramer believes Bitcoin is no different from shares of Facebook or Google  - compares asset to Nasdaq-100 futures. 
  • Cramer’s comments have garnered criticism from experts as his recent predictions on Bitcoin and cryptocurrencies showed “inverse” correlation with prices. 

Jim Cramer, host of a popular financial news show “Mad Money” recently made comments on Bitcoin and Gold, sparking a debate in the crypto community. Cramer has received pushback from the crypto community in the past for his crypto recommendations, urging investors to shed their holdings right before Bitcoin’s massive bull run, fueling a narrative called “Inverse Cramer.”

Experts in the crypto community criticized Cramer’s recent bearish comments about BTC and interpreted it as a “buy signal” for Bitcoin instead. 

Also read: Why Solana, Cardano and Polkadot holders are pouring capital into small caps in 2023

Jim Cramer urges investors to sell “speculative asset” Bitcoin, yet again

Jim Cramer, an American TV personality and the host of CNBC’s Mad Money is notorious for making inaccurate predictions about cryptocurrencies like Bitcoin. Jim Cramer believes that Bitcoin is a speculative asset and recently compared the asset to shares of technology firms like Facebook and Google, leading companies in the Nasdaq 100 share index. Cramer argued that BTC is no different from shares of technology firms. 

In a recent episode of Mad Money, Cramer urged investors to look into gold, as opposed to cryptocurrencies. Cramer used a chart by DeCarley Trading that compares Bitcoin futures performance to Nasdaq100. The chart goes back to March 2021 when both indexes started moving in close proximity to one another. 

Commenting on the chart, Cramer said that Bitcoin is neither a form of currency nor a secure store of value. 

Chart from DeCarley Trading

Chart from DeCarley Trading 

Cramer elaborated on the chart above:

The charts, as interpreted by Carley Garner, suggest you need to ignore the crypto cheerleaders now that Bitcoin’s bouncing. And if you seriously want a real hedge against inflation or economic chaos, she says you should stick with Gold. And I agree.

Bitcoin experts interpret Cramer’s comments as “buy signal” for BTC

Cramer’s comments led to pushback from the crypto community, with many people arguing that Cramer is out of touch with the current state of the market and that his opinions should be taken with a grain of salt. This led to the emergence of a new narrative in the crypto world, which has been dubbed the "Inverse Cramer."

Read more about the narrative and how Cramer’s comments on Bitcoin aged here.

The "Inverse Cramer" narrative is based on the idea that whenever Jim Cramer makes negative comments about a particular asset or investment, that asset or investment is likely to go up in value. This is because many traders and investors in the crypto community believe that Cramer's comments are ill-informed or premature. 

One of the main arguments against Cramer's comments on Bitcoin is that the TV personality is simply out of touch with the current state of the crypto market. Bitcoin and other cryptocurrencies have been on a bullish run since the beginning of 2023, with prices wiping out the losses from the FTX exchange collapse in November and revisiting 2022 highs. 

Cramer's comments fail to take into account the positive developments in crypto prices and the "Inverse 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 crypto market. 

Dan Held, a crypto educator and marketing advisor at Trust Machines Co interpreted Cramer’s commentary on Bitcoin as a “buy signal.”

Billy Markus, the software engineer behind Dogecoin critiqued Cramer’s recommendation and comparison of Bitcoin with the Nasdaq 100 and Gold.  

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Crypto Today: Bitcoin, Ethereum and XRP what to expect as SEC executive says Howey test applies to cryptos

Crypto Today: Bitcoin, Ethereum and XRP what to expect as SEC executive says Howey test applies to cryptos

Bitcoin trades above $62,500 on Monday, sustains above key support as head of US SEC enforcement division says Howey test applies to cryptos. Ethereum and XRP trade above key support, extending gains by nearly 3% on the day. 

More Cryptocurrencies News

Ripple whales buy hundreds of millions of XRP tokens as the altcoin rallies

Ripple whales buy hundreds of millions of XRP tokens as the altcoin rallies

Ripple (XRP) noted the highest weekly gains in 2024 over the weekend as XRP holders celebrated the one-year anniversary of Judge Torres’ ruling in the SEC vs. Ripple lawsuit. XRP rallied to a peak of $0.5661 on Saturday, July 13. 

More Ripple News

Bitcoin surges past $60,000 as ETFs report $1.04 billion inflows last week

Bitcoin surges past $60,000 as ETFs report $1.04 billion inflows last week

Bitcoin breached above the descending trendline on Sunday and trades 3.5% up at $62,924 at the time of writing on Monday. On-chain data indicates a decrease in miners' selling activity, complemented by US spot Bitcoin ETFs recording $1.047 billion in inflows last week. 

More Bitcoin News

JasmyCoin price surges following partnership with NOWPayments

JasmyCoin price surges following partnership with NOWPayments

JasmyCoin price breaks above a descending channel, signaling a break in market structure from bearish to bullish. NOWPayments announces its partnership with JASMY in Japan. JASMY featured in a Forbes article for coins outperformed Bitcoin in the first half of 2024.

More Cryptocurrencies News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis