Jim Cramer Says to Own Bitcoin. Inverse Cramer Effect Incoming?

CNBC’s Mad Money host, Jim Cramer, recently urged his listeners to own Bitcoin, calling it a “great thing to have in your portfolio.” Still, some are concerned about the effect his comment will have on the cryptocurrency’s near-term price performance.

Inverse Cramer Effect Coming Soon?

Instead of investing in the stocks of companies that hold Bitcoin, like MicroStrategy, Cramer stressed the importance of owning BTC directly. Echoing his bullish stance on BTC, Cramer told an investor over the phone:

“I’d say if you want to own Bitcoin, own Bitcoin. I hold Bitcoin. You should hold Bitcoin. Bitcoin is a great thing to have in your portfolio.”

Some investors use the term “Inverse Cramer” effect to describe the belief that assets recommended by Jim Cramer often perform poorly afterward. Some traders even make bets against his advice, trying to profit from this pattern.

Opinions have been divided after Cramer’s endorsement. Some see this as a bullish signal for the apex crypto asset, suggesting the TV host’s comment signals its growing acceptance in the financial sector. Others remain cautious due to Cramer’s history of controversial predictions, wondering if the Inverse Cramer effect might strike again.

Is Bitcoin Affected?

In late November, the crypto community was optimistic that the leading cryptocurrency would hit the $100,000 mark for the first time. However, these hopes were shattered a few days after Cramer signaled interest in BTC. The apex crypto took nearly two weeks to attain the much-expected $100,000 threshold.

Fast-forward to the present, BTC has not seen any significant price drawbacks after Cramer’s comment. Still, the leading crypto asset experienced a considerable price tumble yesterday, dropping from around $103,000 to $97,900 within a few hours. The BTC sudden price correction caused many investors to panic, and liquidations ensued. Interestingly, the asset has erased most of its losses and now trades at $102,800 at press time.