Jim Cramer, host of CNBC’s Mad Money, has reiterated his bearish stance on Bitcoin despite the cryptocurrency’s recent price surge amid the banking crisis. In response to a caller’s question about whether growing distrust in the banking system strengthens Bitcoin’s investment case, Cramer firmly rejected the idea.
Cramer’s Clear Advice
Cramer acknowledged that Bitcoin’s price has risen following the collapse of major banks like Silicon Valley Bank and Signature Bank, but he attributed the move to manipulation. “Bitcoin is a strange animal,” he said. “I will say point-blank, I think it’s being manipulated up … I would sell my bitcoin right into this rally.” He emphasized that manipulation likely persists, referencing former FTX CEO Sam Bankman-Fried (SBF) as a historical manipulator. “Believe me, I had been a believer one time in bitcoin. Not here, not now,” he added.
Market Reaction: Contrarian Signal
Cramer’s recommendation sparked a flurry of social media comments, with many users treating it as a buy signal given his poor track record. An inverse Cramer exchange-traded fund (ETF) even exists, aiming to produce returns opposite to Cramer’s public picks. Clips of Cramer recommending Silicon Valley Bank stock last month resurfaced after regulators shut down the bank last Friday. Similarly, he endorsed Signature Bank in April 2022, nearly a year before its forced closure by New York regulators.
Track Record of Questionable Advice
Cramer’s history includes various missteps. He bought Bitcoin at $500 in 2013 and was bullish, but later called it a bubble in 2021 and advised selling in 2022. His latest sell advice is seen by some traders as a contrarian indicator, potentially signaling further upside. However, Cramer’s views reflect a broader skepticism among some traditional finance figures about Bitcoin’s sustainability. Whether his warnings will prove prescient or become another example of reverse psychology remains to be seen.