180-Degree Turn: Jim Cramer Recommends Bitcoin Again After Recent Sell-Off
Less than a month after I noted his announcement of exiting bitcoin, Jim Cramer has once again changed his rhetoric. In a fresh episode of Mad Money, the host gave viewers direct advice: buy BTC. This decision looks especially contrasting against the backdrop of his recent concerns about the threat quantum computers pose to the cryptographic protection of the first cryptocurrency.
Selling and a new turn
Recall that on July 31, during Mad Money, Cramer discussed the prospects of quantum computing with IBM CEO Arvind Krishna. Krishna then stated that the threat of cracking cryptography could become real within the next three to four years, which prompted Cramer to decide to offload his coins. A few days later, he confirmed the sale in the studio, although no proof of the transaction—neither wallet data nor documents—was provided.
Advice to the viewer: direct purchase instead of derivatives
In the new episode, a viewer named Sanjay asked about the fate of Bitmine Immersion Technologies (BMNR) shares, which provide indirect exposure to Ethereum. Cramer's answer was unequivocal: exit such derivative instruments and buy bitcoin directly. According to him, cryptocurrency derivatives carry too much risk.
Such advice sounds at least ironic, given his recent exit from BTC. In the trading community, this episode has already been dubbed another manifestation of the "inverse Cramer"—an unwritten rule that betting against the CNBC host's recommendations yields more profit than following them. The reputation of this phenomenon is reinforced by the story of the Tuttle Capital ETF, launched in 2022 to bet against Cramer's predictions. The product lost 15.7% during its operation, while the S&P 500 rose 25.4%, and it was closed in February 2024.
Price dynamics: missed opportunity
Since Cramer announced his sale, bitcoin has shown a steady upward trend. At the time of his statement, the asset was trading around $63,700, and today the price has already exceeded the $79,500 mark. The growth continued regardless of the host's actions, which once again underscores that the market does not rely on the opinion of an individual media figure.
It remains a mystery whether Cramer actually sold his coins, still holds them, or has already bought them back. His contradictory statements over recent weeks leave viewers facing a difficult choice: whether to trust advice that changes faster than the bitcoin price.
My professional view: media personalities making decisions under the influence of emotions and momentary fears are a poor guide for a long-term investor. The quantum threat is a real challenge for the entire industry, but it affects not only bitcoin but the whole digital economy, and it will be addressed at the infrastructure level, not through panic selling. Investors should rely on their own analysis and planning horizon, rather than on the volatile statements of showmen.