
Jim Cramer, emblematic figure of the financial world, is making waves again with a pessimistic prediction for cryptos in 2024. Known for his trenchant analyses, he anticipates a difficult path for the crypto sector. However, this position stands in stark contrast to current market trends.
Cramer’s Lingering Pessimism for Cryptos
Cramer, famous for his show Mad Money on CNBC, is known for his strong opinions on cryptos. Its recent prediction highlights a difficult 2024 for the sector. This opinion is not new, because he has always been skeptical. He even goes so far as to describe crypto holders as “ stupid“. However, despite its skepticism, the crypto market has shown notable resilience. Notably the price of the crypto Bitcoin, which reached $45,734. This is its highest value since April 2022.
The reality is quite different: in fact, the market experienced an increase of 7.16% from the second day of the year. This boosted its capitalization to $895.7 billion, a performance that goes against Cramer’s forecasts. This contradiction raises questions about the factors behind this rise. The constantly evolving crypto market leaves room for doubt: will this analyst’s skepticism be confirmed or will the market deny it once again?
Is the opposite effect likely?
This analyst’s history with Bitcoin and his consistent negative view of cryptos have earned him a reputation as a skeptic. His statements even led to what is called the phenomenon “ Reverse Cramer“, where investors take the opposite view of his predictions.
This strategy has been popular enough to prompt investment firm TUTTLE to launch the Inverse Cramer ETF in October 2022 which tracks stocks based on Cramer’s television appearances and social media posts.
The Cramer Inverse ETF illustrates a unique approach. This in effect allows investors to capitalize on market movements that go against Cramer’s predictions. Currently, the ETF is down 0.63% compared to Bitcoin’s 7% rise. This shows how expert predictions can evolve.
It is important to note the associated risks, as crypto investors could suffer losses if Cramer is absent from CNBC or X for an extended period of time.
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