Jim Cramer admits he was wrong about Bitcoin — ‘I was premature’

Popular markets commentator Jim Cramer has acknowledged his misjudgment when it comes to Bitcoin, admitting that he was too hasty in advising investors to sell the cryptocurrency. Speaking on his CNBC Mad Money show on November 22, Cramer responded to a caller's question about buying shares in Bitcoin miner CleanSpark by suggesting that those who believe in Bitcoin should increase their exposure to it. However, he later admitted that he had been premature in his previous calls.

A change of heart

In a recent episode of his show, Cramer made a surprising admission regarding his stance on Bitcoin. He confessed, "Look, if you like Bitcoin, buy Bitcoin. That has always been my view. And for a while, I liked it, and I decided that money had been made, but I was premature." Cramer also mentioned that, despite his imperfect predictions about Bitcoin, he had still managed to make a significant amount of money from his investment in the cryptocurrency.

A costly mistake

Back on December 5, 2022, when Bitcoin was trading at $17,150, Cramer strongly advised investors to sell all their crypto investments, regardless of the cost. He believed that it was never too late to rid oneself of a bad position. However, since then, Bitcoin has experienced a remarkable 118% rally, with its current price standing at $37,390.

A reputation for incorrect calls

Cramer's predictions about Bitcoin, as well as his inconsistent stance on cryptocurrency, have become a source of amusement in investment communities. Many have noticed his uncanny ability to make incorrect calls at crucial moments. In fact, in August 2022, a crypto trader claimed to have doubled the size of their portfolio by simply trading in the opposite direction of Cramer's recommendations. This incident highlights the skepticism surrounding Cramer's insights and advice.

An "inverse Cramer ETF"

Cramer's reputation has even led to the creation of an "inverse Cramer ETF" by an investment fund. This financial instrument is designed to yield results that are the opposite of Cramer's recommendations. The fund aims to provide returns on trades that go against Cramer's advice, before fees and expenses are deducted.