Long-time crypto critic Jim Cramer appears to be reconsidering his stance on bitcoin (BTC), sharing his belief in the ascendant crypto’s resilience and future Tuesday on CNBC.
Cramer’s change of heart comes ahead of what’s anticipated to be the U.S. Securities and Exchange Commission’s (SEC) regulatory approval of a spot bitcoin exchange-traded (ETF) and as the price of the asset jumped past $45,000 for the first time since April 2022.
Cramer’s Surprising U-Turn
Jim Cramer, the host of CNBC’s Mad Money, has performed an about-face on his previously icy attitude towards Bitcoin, declaring that it is “here to stay.”
“This thing, you can’t kill it. Bitcoin is a technological marvel and I think people need to start recognizing it’s here to stay,” Cramer said on Dec. 2 on CNBC.
Cramer has previously been highly bearish on Bitcoin, just like Berkshire Hathaway billionaire Warren Buffett and his late right-hand man Charlie Munger. But the markets commentator asserts Munger essentially missed the boat on the benchmark cryptocurrency.
“The late Charlie Munger, who was so brilliant on so many things, was blind to this…It’s a reality.”
On Dec. 5, 2022, when Bitcoin was trading for just under $17,200, Cramer emphatically urged investors to liquidate all their crypto assets no matter the cost, claiming it was “never too late to sell an awful position.” The price of bitcoin has rallied over 155% since, with BTC currently trading for $44,921. Before that Cramer revealed he had dumped the majority of his BTC holdings in 2021 after China imposed the crypto mining crackdown.
Cramer’s tune started changing last November, when he admitted that his skepticism towards bitcoin was “premature”.
Today, he went on to highlight the U.S. Security and Exchange Commission’s inability to close it down.
“The SEC has been against it the whole time. This is a remarkable comeback, that was unexpected. Except for all the bulls who turned out to be right.”
Perfect Contrarian Indicator?
While the CNBC host is popular in the finance world, some crypto faithfuls think it may be wiser to bet against his crypto calls. He has even inspired an “Inverse Cramer” meme on social media. The catch? If Cramer says to dump a financial product — buy. If he advises purchasing a financial product — sell.
Given such reasoning, some crypto spectators suggest that Cramer’s revived conviction in bitcoin could spell doom for the top digital coin. “Shit, now Bitcoin is dead,” Pantera Capital CEO Dan Morehead posited.
The bitcoin price has kicked off 2024 with a bang, soaring to a 21-month high above $45,000 amid heightened speculation that the SEC will approve several spot bitcoin ETFs this week. Pro-XRP lawyer John Deaton estimates the chances of ETF approval by Jan. 10 at 98%, which explains investors’ recent optimism.