Bitcoin’s Hot Streak Abruptly Ends After Jim Cramer Calls It a ‘Marvel’

There’s an oft-repeated mantra in online investing circles: Do the opposite of whatever Jim “Mad Money” Cramer says. The TV stock market pundit has such a poor track record that there’s even a real investment fund called Inverse Cramer. 

So, when Cramer backpedaled on years of putting down Bitcoin on Tuesday morning by calling it a “technological marvel” that’s “here to stay” amid a hot streak that saw the price of 1 BTC rise to $45,000, investors saw a fall on the horizon. Here is a sample of comments left under Bitcoin Magazine’s X post containing a clip of Cramer’s statement: “Oh no,” “Great, btc going to 0,” “It’s over boys,” “FUCCKKKKKKKKKKK.” Early on Wednesday morning, I received a newsletter in my inbox from popular crypto price tracking site CoinMarketCap with the subject line, “Cramer Changes Stance on Bitcoin—Time To Sell?”

Immediately, the price of Bitcoin fell from its high of $45,000 to roughly $41,000. It was a precipitous fall of 8 percent that triggered about $400 million in liquidations, according to CoinDesk. 

It would be inadvisable to put too much stock into how much influence Cramer’s predictions have on the price of any asset, including Bitcoin. But it is undoubtedly funny, and further shores up the Inverse Cramer investment thesis. In reality, sharp pullback and recovery is a frequent occurrence in Bitcoin, as investors seek to sell at what might be the top (and, often, buy back in at a lower price). Did Cramer’s statements add, even in a small way, to this ineffable mass sentiment? Or did he merely fail to read the room in spectacular fashion, as he is known to do? It’s difficult to say. 

A more concrete explanation for the sell-off is increasing uncertainty around whether several Bitcoin spot exchange-traded funds (ETFs)—which would allow investors to track the price of Bitcoin without actually purchasing it—will be approved by regulators this month. Investors have been extremely hopeful about these ETFs, with financial experts saying as recently as Tuesday that some will likely be approved. The main source of doubt appears to be a report by crypto firm Matrixport which circulated early Wednesday morning and stated that the ETFs will likely be denied. 

For better or for worse, depending on your outlook, Cramer is likely right that Bitcoin isn’t going away any time soon—something that Motherboard has maintained over the years throughout the crypto industry’s many ups and downs.