The famous host of Mad Money has surprised the market once again. Less than a month after announcing his complete exit from bitcoin, Jim Cramer is now publicly recommending that investors buy BTC. This rapid reversal has reignited discussions about the infamous "Inverse Cramer Indicator."
At the end of July, I noted his statement about selling all his bitcoin. At the time, the reason was concerns related to the development of quantum computing. During a broadcast featuring IBM CEO Arvind Krishna, an alarming signal emerged: quantum computers could potentially crack the cryptographic protection of the first cryptocurrency within three to four years. That statement instantly triggered panic, and Cramer rushed to lock in his position.
However, the irony of the situation is obvious: since his exit, the asset's price has not only held steady but has risen significantly. When Cramer announced the move, BTC was trading around $63,700, whereas now the asset has confidently surpassed the $79,500 mark. The rally continued despite his bearish forecast.
New Recommendation and Old Risks
In the latest episode of the show, a viewer named Sanjay asked about the fate of shares in Bitmine Immersion Technologies (BMNR), which provide indirect exposure to Ethereum. Cramer's answer was categorical: he advised selling those shares and buying bitcoin directly, arguing that the risks of derivative instruments in the crypto market are too high. In essence, the host admitted that the direct asset is safer than trying to play it through public companies.
Such a shift in rhetoric—from "selling everything" to "buy now" within a few weeks—inevitably raises questions. Financial analysts have long joked that betting against Cramer's advice yields more profit than following it. Moreover, Tuttle Capital even launched an ETF that operated on the inverse indicator. However, that experiment failed: the product lost 15.7% while the S&P 500 index rose 25.4%, and it was shut down in early 2024. This clearly demonstrates that even the "contrarian" strategy is not a panacea.
At this point, it is impossible to say with certainty whether Cramer holds bitcoin, sold it, or has already bought it back. His statements over the past few weeks contradict each other. The market, meanwhile, continues to live its own life, ignoring the TV host's opinion. In this situation, investors should rely on their own analysis and fundamental factors rather than the emotional decisions of celebrities.
My assessment: such public reversals are a classic example of how hype influences market sentiment. However, for long-term bitcoin holders, this is more of a positive signal, confirming that the institutional fear of the quantum threat is premature for now, and retail investors continue to believe in the asset.