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Financial analyst and host of CNBC Mad Money, Jim Kramer, has changed his stance on Bitcoin, calling the cryptocurrency a technological marvel that is here to stay.
However, he had a much more bearish outlook for the crypto space and predicted another weak year for the crypto markets.
Jim Cramer Changes BTC Stance
The former hedge fund manager was previously quite bearish on Bitcoin (BTC). However, ahead of what many expect to be regulatory approval by the Securities and Exchange Commission (SEC) of a spot Bitcoin ETF, Cramer has changed his stance on the asset. Bitcoin’s price has been on an upward trend as the deadline draws near, rising above $45,000 for the first time in 21 months. Cramer stated,
“This thing, you can’t kill it. Bitcoin is a technological marvel, and I think people need to start recognizing it’s here to stay.”
Cramer’s comments are vastly different from what he had stated back in October 2023. Cramer stated during the highly publicized Sam Bankman-Fried trial that he wasn’t interested in getting long in crypto as “Mr Bitcoin is about to go down big.” Cramer had also stated that he had sold most of his Bitcoin holdings in the aftermath of the Chinese crackdown on Bitcoin mining.
“I can’t go out with gold because gold is not good; I can’t go out with bitcoin (BTC) because I can’t be in something where Mr. Bitcoin is about to go down big.”
While Cramer spoke positively about the asset, he did state that not everyone now is in it for the long haul, suggesting that spot ETF approvals could be a “sell the news” event. The Bitcoin price pushed above $45,000 for the first time since April, and speculation around the approval of a spot Bitcoin ETF by the SEC picked up steam.
Crypto Could Have A Weak Year
While Cramer was bullish about Bitcoin, he expressed skepticism about other cryptocurrencies and the crypto space in general. Taking to X, Cramer predicted another weak year for crypto. However, this view is nothing new, as Cramer has consistently been bearish on cryptocurrencies. However, Cramer’s deviation from several bullish predictions about crypto has sparked a debate within the larger financial community. This is because the crypto ecosystem has seen significant growth and adoption over the past year. As a result, Cramer’s bearish outlook has raised quite a few eyebrows, more so because of the widespread institutional adoption of cryptocurrencies.
“As I predict another weak year for crypto, I do ponder how many people are still involved, now many millions of people.”
A Crypto Skeptic
Cramer’s consistent negative outlook on crypto has earned him a reputation for being a crypto skeptic. In the past, statements by Cramer have led to a phenomenon called the “Inverse Cramer” effect, where investors take the opposite stance to his prediction. In fact, this strategy gained enough friction for investment firm TUTTLE to launch the Inverse Cramer ETF. This ETF managed and tracked stocks based on Cramer’s posts and appearances.
The ETF takes a unique approach, allowing traders to capitalize on any market movements that are contrary to Cramer’s predictions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.Investment Disclaimer