180-degree turn: Cramer advises buying bitcoin a month after the sell-off
Famous TV host and former hedge fund manager Jim Cramer has once again surprised the market. Less than a month after he announced a complete exit from bitcoin, citing quantum computing risks, he publicly recommended a viewer of his show to buy BTC directly. Such a rapid shift in rhetoric has once again stirred discussions about the infamous "inverse Cramer indicator."
Let me recall the timeline of events. At the end of July, during the Mad Money broadcast, the studio guest—IBM CEO Arvind Krishna—shared a worrying forecast. He stated that within a three-to-four-year horizon, quantum computers could become a real threat to bitcoin's cryptographic protection. This statement became a trigger for Cramer, who within a few days announced that he had sold all his coins. Notably, no confirmation of this transaction—neither wallet data nor position size—was provided.
New recommendation and old doubts
In the latest episode of the show, a caller named Sanjay asked Cramer about the advisability of buying shares of Bitmine Immersion Technologies (BMNR)—a company providing indirect exposure to ether. The host's answer was categorical: he advised exiting such derivative instruments and buying bitcoin directly, arguing that the risks embedded in miner stocks and related securities are too high.
This advice looks especially contrasting against the backdrop of his recent sell-off. Such flip-flopping has long given rise to the market meme rule of the "inverse Cramer": it is believed that betting against his recommendations yields more profit than following them. There is even a sad precedent—Tuttle Capital launched an ETF that shorted stock selections based on Cramer's advice. The product closed in February 2024, losing 15.7% during its operation, while the S&P 500 index rose by 25.4%.
Price dynamics and conclusions
Since his announcement about selling, bitcoin has demonstrated impressive momentum. At the time of the announcement, the asset was trading around $63,700, and today the price has already exceeded the $79,500 mark. The growth continued despite Cramer's exit from his position, which only adds fuel to the fire of debates about the influence of his persona on the market.
It remains a mystery whether he actually holds the coins, sold them, or has already managed to buy them back. The host's statements over recent weeks contradict each other, so investors should rely solely on their own analysis rather than the emotional impulses of media personalities.
My comment: The Cramer story is a classic example of how media noise can influence short-term movements but not the long-term trend. Fundamental factors, such as the halving and the inflow of institutional capital, remain far more significant drivers for bitcoin than the opinion of an individual TV host, no matter how loud it may be. The market has proven once again: blindly following others' advice, especially such fickle advice, is a path to missed opportunities.