Bitcoin has nearly doubled since Jim Cramer advised users to sell on his television show, Mad Money.
When Bitcoin hovered around $24,000 nine months ago, Cramer advised users to sell their holdings. Investors who heeded this advice missed an over 80% increase in value, underscoring the risks of relying on celebrity endorsements or opinions in financial decision-making.
Many crypto enthusiasts, however, are well familiar with the reverse Cramer effect. It’s one of those comedic and sometimes accurate speculations in the crypto community that Bitcoin prices always trend opposite to Cramer’s advice. For instance, investors who bought $1,000 in BTC after Cramer’s comments would’ve nearly doubled their investments in the current rally.
Cramer’s stance on Bitcoin has been notably inconsistent over the years. In 2017, during Bitcoin’s dramatic bull run, he expressed skepticism about its sustainability and potential regulatory crackdowns. However, as Bitcoin continued gaining mainstream acceptance, Cramer appeared more open to it as an investment, even revealing in 2020 that he had bought it. But earlier this year, he again emphasized that he no longer believes in the leading token.
It’s yet another reminder that relying solely on the advice of television personalities or financial gurus can lead to missed opportunities or substantial losses.