Counter-Trading Jim Cramer’s Advice On Bitcoin
In November 2022, when the FTX crypto exchange collapsed and Bitcoin’s price dropped by more than 50% to below $15,000, Jim Cramer advised investors to sell their Bitcoin. However, just a few months later, the price started to recover slightly, and Cramer gave his infamous ‘Sell Bitcoin Now’ advice.
In a video shared on X by the parody account @CramerTracker, Cramer can be seen advising investors to sell their Bitcoin when the price had risen around 4% in one week to $24,000. He believed that BTC’s price was being manipulated and selling during the slight pump was the best move.
Cramer also stated that he no longer believed in the asset due to the alleged price manipulation. However, less than a year later, Bitcoin’s price continued to rise, proving Cramer wrong.
From Cramer’s sell call at $24,000 until now, the price has increased by 80%. This means that if an investor had bought $100,000 in BTC when Cramer advised selling and held onto it until now, they would have made an $80,000 profit in less than a year.
The Inverse Cramer Tracker ETF
Cramer’s track record of being wrong has led to the creation of a fund dedicated to doing the opposite of what he says. The Inverse Cramer Tracker ETF currently sits at $22.07 after reaching an all-time high of $26.
The fund’s top holding is currently the ProShares Bitcoin Strategy ETF (5.50%), with around $3.1 million in net assets. Other notable investments include PayPal Holdings Inc., AMC Entertainment Holdings Inc., and Dominion Energy Inc., among others.
Interestingly, Cramer changed his stance on Bitcoin in November 2023 and has since endorsed Bitcoin investments, referring to his earlier predictions as ‘premature.’
Hot Take: Cramer’s Incorrect Calls and Bitcoin’s Success
Jim Cramer’s frequent incorrect predictions about Bitcoin have become well-known in the crypto community. Despite advising investors to sell their Bitcoin when the price was at $24,000, the cryptocurrency has continued to rise, gaining 80% since Cramer’s sell-off call. This demonstrates the potential gains that can be achieved by counter-trading Cramer’s advice. The creation of the Inverse Cramer Tracker ETF further highlights the skepticism surrounding Cramer’s predictions. It will be interesting to see if Cramer’s newfound endorsement of Bitcoin investments will hold true or if he will make more premature calls in the future.
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