- Bitcoin suffers a significant sell-off.
- CNBC’s Jim Cramer taunts Bitcoin investors.
- The taunt coincided with a strong rebound.
CNBC’s Jim Cramer has developed an infamous reputation for routinely getting calls wrong, particularly regarding Bitcoin. Cramer’s years of ill-timed pronouncements have become so notoriously off-base that some investors have taken hold of a tongue-in-cheek “inverse Cramer” strategy of doing the opposite of his recommendations.
On Tuesday, as Bitcoin was caught in a sharp sell-off, Cramer lived up to his reputation as a contra-indicator. During the market panic, the CNBC host posted a tweet mocking BTC investors, but Bitcoin responded by swiftly reversing course to rebound strongly.
The Jim Cramer Effect
Tuesday evening (UTC) saw Bitcoin in the throes of a sharp sell-off, dropping from a yearly high of $69,000 to $59,000. Cramer took the opportunity to mock the capitulation by tweeting a photo of an adorable dog named “Pip” alongside text jeering Bitcoin investors.
However, the timing of the tweet aligned with a rebound in the BTC price, adding an ironic twist of fate to the situation. Although the recovery was not confirmed when Cramer posted, Bitcoiners still rallied to clap back against the CNBC host.
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Researcher Dylan LeClair played on Cramer’s reputation for consistently wrong calls, saying, “We are so back.” Meanwhile, British HODL implied the mocking tweet was merely Cramer’s ploy to farm engagement from the crypto community.
YouTuber Lark Davis anticipated the Memecoin Industrial Complex would launch a Pip coin as a playful response to Cramer’s tweet. True to form, the $Pip token swiftly debuted on the Solana DEX Raydium mere hours later. Peaking at an impressive $0.077, netting over 8,000% gains for early investors. However, in a classic pump-and-dump, its price soon retreated to pre-pump levels.
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While the $Pip token provided a colorful sideshow, showcasing the wild speculative nature of the crypto world, the broader Bitcoin market was actively debunking Cramer’s bearish thesis.
Bitcoin Bounces Back
Following weeks of overt strength, Bitcoin topped out at $68,800 by 15:00 UTC on Tuesday. The ensuing sell-off saw a 14% drawdown that found support at $58,900 by 19:00 UTC.
Cramer’s tweet was posted at 20:06 UTC, coinciding with a recovery that accelerated into the early hours of Wednesday. Bitcoin recorded a $67,700 intraday high on Wednesday, at the time of writing, to recover most of Tuesday’s losses.
Investor Mike Alfred commented that this was “very healthy price action,” and a prime opportunity to accumulate more Bitcoin.
On the Flipside
- The Inverse Cramer ETF ceased operations in January 2024 after 14 months, suggesting Crammer’s reputation for consistently wrong calls is undeserved.
- Bitcoin has defied naysayers repeatedly, rallying over 300% since the start of the year.
- Despite Tuesday’s sell-off, the macro uptrend remains intact for now.
Why This Matters
Cramer’s ill-timed jab at Bitcoin underscored his reputation as an inadvertent contra-indicator. While just another data point, Bitcoin’s ensuing bounce highlighted how the asset remains undeterred by detractors’ projections of its demise.
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