Good day everyone,
I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. In this post I will be looking at the recent admission from Jim Cramer about being wrong on Bitcoin. Given his track record, if he is backtracking on Bitcoin then the recent upswing and good times may be coming towards an end.
Jim Cramer Wrong?!?
Never did I think it was possible. Jim Cramer was wrong!! No, I am not joking, I am fully serious. The man, the myth, the legend himself was wrong.....and admitted it. The financial analyst has admitted he was wrong on the direction of Bitcoin when he previously urged users to dump the asset and sell immediately. During his most recent CNBC Mad Money Show, where Cramer advises callers on assets, he revealed his current stance on the digital gold that is Bitcoin.
When a caller rang in and asked about the profitability of acquiring shares in Bitcoin miner CleanSpark (CLSK) Cramer was very positive in his response, urging anyone who loves Bitcoin to go for it. Cramer admitted he made a lot of money from his own exposure to the asset in recent years, and stated:
“Look, if you like Bitcoin, buy Bitcoin. That has always been my view. And for a while, I liked it, and I decided that money had been made, but I was premature.”
This comes following an uptick in the industry over recent weeks. By the end of 2022 the entire digital asset industry was in turmoil as prices crashed and a weakened investor sentiment was formed. This became especially true following the collapse of Terra Luna, FTX, and the other major bankruptcies endured by multiple firms.
Bitcoin fell a staggering 57% and its new low prices were coupled with increasing energy prices. This caused difficulties and struggles for miners as they found it difficult to stay afloat. This led to plunging shares and a prolonged turbulent window for publicly traded ones.
With the prices of Bitcoin pushing back towards $40,000 once again, the mining ecosystem is experiencing a radical change. The year to date returns have been 125.30% meaning previous loses have been wiped out for both miners and traders alike.
Bitcoin miners like CleanSpark, Riot Platforms, and Hut 8 have all seen growth in their stock price and many are looking to expand their operations to increase capacity and efficiency ahead of the next halving predicted to come in April 2024. CleanSpark managed to soar 7.28% over the past day of trading and a massive 21% in the past five days. Bitfarms LTD is up 1.75% over the past day while Riot Platforms and Marathon Digital are up 3.85% and 5.92% respectively.
Cramer is giving this latest advice to “buy Bitcoin” at a time when prices are recovering, while it is also important to note he is far from a pro-Bitcoin enthusiast. He has often urged investors to sell during bear markets, which is terrible advice unless the investor has little other choice and needs the funds. Back in December 20202 he urged investors to sell their assets when it traded for $17,150. At the time he noted the position as awful and added that "it's never too late to sell."
With the market currently up over 115% and the bulls hoping to spark another run with the possability of a spot Bitcoin ETF being approved by the Securities and Exchange Commission (SEC) it seems Cramer is jumping on the bandwagon and shilling the current hype around the recent Bitcoin price surge. While he is not the first to have made mistakes in the past when predicting the markets, he has often been cited as a man whose advice often leads to the reverse scenario.
Back in August 2022 a crypto trader claimed he doubled the size of his portfolio by trading in the opposite direction to what Cramer recommended. Two months later, on the 6th of October 2022, an investment fund filed for an “inverse Cramer ETF.” This would be a financial instrument designed to return results on trades “that are approximately the opposite of, before fees and expenses, the results of the investments recommended by television personality Jim Cramer.”
Have a great day,
Peace. CryptoGod-1.
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