Jim Cramer Spots Bitcoin Selling Warning Amid ETF Rise
January 19, 2024, marks another pivot in Jim Cramer's stance on Bitcoin. In a recent tweet, Cramer warned of a “bad start to the Bitcoin selloff,” casting doubt on the sustainability of the recent rally.
This comes after Bitcoin ETFs recently surpassed silver ETFs, taking second place in the commodity ETF space.
Jim Cramer on Bitcoin ETFs: No one showed up.
According to Cramer, Bitcoin ETFs fail in the following simulations:
“You can't have hundreds of billions of dollars worth of doubles waiting for the ETF and then almost nobody will come.”
However, Ripple CEO Brad Garlinghouse contrasted Cramer's view and expressed optimism about Bitcoin ETFs outperforming silver ETFs. He considered it a big milestone that indicates institutional acceptance and government recognition.
On the other hand, the bullishness of many investors has weakened due to the fall in prices.
According to crypto market analysis platform Sentiment, fear of missing out (FOMO) has fueled local bitcoin highs.
“Many experts believed that the foregone conclusion of these approvals was already ‘baked in' to market prices. [ETF approval] An announcement was made.”
Read more: What is a Bitcoin ETF?
Bloomberg analyst James Seyfarth reminded investors that the most successful ETFs get off to a slow start. As a comparison, he pointed to Defined Outcome ETFs:
“For those considering Bitcoin ETF launches, they were a flop. Relax, give it time. This is what healthy ETF growth looks like.”
Reversed Bitcoin sentiment
Cramer's latest bullish sentiment contradicts his earlier bullish outlook, which has been hailing Bitcoin as a “technological wonder” and a strong asset since January 3, 2024. As Bitcoin rose above $45,000, his position aligned with the bullish sentiment in the market.
However, Cramer's volatile opinions on cryptocurrency remain constant. In the year His advice to exit the crypto market in 2023 coincided with a major buying opportunity, and his advice to sell at the bottom of the market in December was later seen as a misstep. These flip-flops have led to the “reverse Cramer” effect, whose predictions are often viewed with skepticism by the crypto community.
Read more: Bitcoin half-cycles and investment strategies: What you need to know
Despite Cramer's high profile, his impact on Bitcoin market volatility appears to be negligible.
Cramer's ever-changing views reflect the vast volatility and uncertainty in the crypto space. Despite his influence, many see his views as a grand market narrative and not as accurate market guidance.
With the recent growth of Bitcoin ETFs and the asset's continued performance, it remains to be seen whether Cramer's latest sell call will significantly affect Bitcoin's direction.
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