Cramer has recently made several questionable calls in regard to the cryptocurrency markets. His comments are often wrong; therefore, investors have created inverted indicators
The recent turnaround of the crypto markets has American media personality Jim Cramer calling it a foul, even though his statements often turn out to be false.
Signs have begun to emerge over the last month of a thaw in the bear market last year. So far in January, Bitcoin is up 30%, from $17,000 to $21,000.
Ethereum is also up more than 30%, while the total crypto market capitalization has once again surpassed $1 trillion. Even non-fungible tokens (NFTs) saw a spike in sales volume in December.
However, rather than acknowledging any of these developments, skeptical Cramer attributes these gains to market manipulation. He tweeted that “the manipulation higher of crypto shows you this is truly a sham market.” The financial media personality’s pronouncements, though, have been known to miss the mark.
Cramer’s Questionable Calls
Since the FTX crash, the most recent turning point for crypto markets, Cramer has made some questionable calls about crypto. First, it was his take on Sam Bankman-Fried.
As the crisis unfolded, Cramer made several disparaging comments about Bankman-Fried, implying that crypto investors had been foolish to trust him. Yet just a few months earlier, like most other media outlets, he had been praising Bankman-Fried, calling him “the new JP Morgan.”
Like others, Cramer also believed that the collapse would trigger a broader crackdown by the authorities, who would soon conduct a “sweep.” By his estimate, this had started on January 12, with Genesis and Gemini, which he described as “a fabulous short run”.
However, Cramer made another prediction about crypto companies that turned out to be patently false. Earlier this month, Cramer said that the SEC would not allow Binance to buy Voyager’s assets.
He argued that the SEC “is VERY concerned that Binance will prove to be more chimerical than we thought.” Later, a United States bankruptcy court. approved Voyager Digital’s proposed $1 billion sale of its assets to US Binance.
In fact, Cramer’s comments have been known to be so off the mark that investors have created inverted indicators. Last year, the host of CNBC’s Mad Money had a couple of ETFs named after him.
While a fund will follow his advice, the “Inverse Cramer” fund will do the opposite. Inverse Cramer’s concept has also hit social media, with a dedicated page highlighting his constant missteps. Inverse Cramer’s motto, as shared via Twitter, is “Tracking Jim Cramer’s stock picks so you can do the opposite.”
By Audy Castaneda