“You can’t kill Bitcoin,” American TV personality Jim Cramer declared on January 2nd. A day later, the crypto reserve currency capitulated and fell by around seven percent to $42,000.
Yesterday, January 8th, the former hedge fund manager spoke up again: “I think Bitcoin has reached its peak.” At the same time, BTC broke through the $47,000 mark – forming a new annual high.
Breathe a sigh of relief for the BTC price?
It is clear to the Bitcoin community: Cramer is always wrong, so Bitcoin must rise when the TV presenter is bearish. The 68-year-old’s assessment is therefore celebrated on X.
Investors in the crypto market are now speculating on Cramer’s fluctuating views on Bitcoin. His recommendations are therefore viewed as counterindicators. This has a name: Inverse Cramer Strategy.
Does this strategy work?
Investing based on the views of a TV personality: actually not a good idea. In the past, however, this strategy has been partially successful: anyone who has $100 at the beginning of 2021 based on the Inverse Cramer Strategy invested would have around $132 in the portfolio at the end of 2022.
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This works because Cramer often made significant errors in his forecasts. Three examples:
In November 2012 predicted the “Mad Money” host saw a sharp decline in the value of Netflix. Over the next six months, the stock’s value increased by 175 percent. That same year, Cramer advised selling HPE shares because of a “broken corporate culture.” Nevertheless, the value rose by 110 percent in the following six months. In April 2015, he recommended Kohls Corp. Six months later, the asset was worth 41 percent less.
Trade Bitcoin when Cramer speaks?
By the way: If you bet against Cramer’s trading recommendations from August 2021 and invested $1,000 in the stocks he selected, it would have resulted in an 83 percent loss in value. The Inverse Cramer Strategy is anything but reliable. Especially: Maybe the entertainer simply enjoys the attention, memes and speculation surrounding himself.
So trading Bitcoin, against Jim Cramer’s assessment, could fail. Do you trust them? Inverse Cramer Strategy, the price will rise in the next few weeks. Until Cramer disagrees again. However, if you prefer to pursue a serious investment strategy, you will find information about the Bitcoin savings plan here.
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