Jim Cramer Backtracks On His Stance Regarding Cryptocurrencies

Markets commentator Jim Cramer has tacitly acknowledged the inaccuracy of his previous stance on Bitcoin (BTC), admitting he was premature in advising investors to sell the cryptocurrency. In the past, Mr. Cramer has openly stated that he believed crypto to be a scam, going as far as to say that he would not touch it in a million years.

Bitcoin succeeds despite naysayers

During a segment of his CNBC Mad Money show which aired on November 22nd, 2023, Cramer responded to a caller interested in investing in Bitcoin miner CleanSpark. He suggested that those who favor Bitcoin should enhance their exposure to it, openly telling everyone to buy the digital asset. He also admitted that he was wrong about his previous notions about BTC and that what he said was premature.

Cramer acknowledged that, despite not consistently making accurate calls on Bitcoin, he had still generated substantial profits via his investment in it. On December 5th, 2022, when Bitcoin was priced at $17,150, Cramer advised investors to liquidate all their crypto holdings regardless of the cost, asserting that it was never too late to sell an awful position. Since then, BTC has surged by more than 120%.

Slowly coming around

Cramer and his fluctuating relationship with crypto have become a popular meme in investment communities, highlighting his tendency to make incorrect calls at crucial moments. He is not the only one to backtrack on this either, as many other notable names such as Warren Buffet have gradually started purchasing Bitcoin despite adopting a very anti-crypto sentiment in the past.

In August 2022, a crypto trader claimed to have doubled the size of their portfolio by trading in the opposite direction of what Cramer had recommended. Two months later, on October 6th, an investment fund filed for an inverse Cramer ETF, a financial instrument designed to yield results on trades that are essentially contrary to the investments recommended by television personality Jim Cramer, before fees and expenses.