Bitcoin experienced a remarkable rally in the past few weeks. This rally led to Bitcoin’s price going over $30,000 for the first time in a year. This 24% increase came less than a month after renowned TV personality and financial guru Jim Cramer advised investors to sell. Cramer advised investors to sell Bitcoin at $24,000, claiming that its price will go down. However, Bitcoin’s price only went up from that day forward. This phenomenon is known as the “Cramer Effect.” This is not the first time this happened as the phenomenon has been observed on numerous occasions. Whenever Cramer has spoken negatively about cryptocurrencies, their value shot up. With Bitcoin recently surpassing the $30,000 mark, the market is feeling the “Cramer Effect” once again.
#Bitcoin is up 24% since Jim Cramer told investors to sell last month.
— Watcher.Guru (@WatcherGuru) April 11, 2023
Cramer warned investors about Bitcoin in an episode of his popular finance show “Mad Money.” He argued that the uncertain future of Bitcoin will lead to a price dump. As the episode went by, he advised investors to sell their holdings at $24,000. Despite the influential host’s bearish outlook, Bitcoin’s price jumped by 24% since the episode. This unexpected turn of events further solidified the notion that every time Cramer expresses a negative view of Bitcoin, it performs well. Nowadays, the crypto community is using Cramer’s negative comments on Bitcoin as a “buy” signal.
The “Cramer Effect” can be traced back to previous instances as well. Just this year, we have seen the “Cramer Effect” in action several times. Notably, Cramer has been a vocal critic of cryptocurrencies in the past, often raising concerns about their longevity. Additionally, Cramer also worries about their lack of regulation. However, even his criticism has led to surges in Bitcoin’s price.
Bitcoin’s Recent Rally Happened Because Of Various Factors
The recent Bitcoin rally cannot be attributed to Jim Cramer’s comments only. As a matter of fact, Cramer’s comments are unlikely to have affected the cryptocurrency in any way. However, it is a known fact that whenever Cramer is pessimistic about Bitcoin, it performs well.
Moving on, the recent Bitcoin rally can be attributed to people using Bitcoin as a hedge against inflation. Not only that, but we must also consider the amount of investments institutions are pouring into Bitcoin at the moment. MicroStrategy for one, has invested hundreds of millions of dollars in Bitcoin in the past month. So, while Cramer’s comments might serve as a good “buy” indicator, he has no power to influence the market to such a high degree.