Jim Cramer Makes Major Bitcoin U-Turn. Should Bulls Be Worried?

Jim Cramer, a prominent figure in financial commentary, shared his newfound belief in Bitcoin's resilience and future earlier today on CNBC.     

Known for his direct and sometimes controversial views, Cramer's change of heart is sparking lively discussions within the cryptocurrency community. 

Speaking on the enduring nature of Bitcoin, Cramer emphasized, "This thing is...You can't kill it. And the late Charlie Munger, who was so brilliant on so many things, was blind to this...It's a reality, and it's a technological marvel. And I think people have to start recognizing that it is here to stay. The SEC has been against it almost the whole time...This is a remarkable comeback that was unexpected." 

He also noted the significant event of SBF's downfall as a pivotal moment for the cryptocurrency.

A sell-the-news event on the horizon?

Cramer predicts that the anticipated approval of a spot Bitcoin ETF might not be the bullish signal many expect. Instead, he foresees it as a potential "sell-the-news" event, suggesting a possible downturn post-approval. "The people who are in it for that are gonna use that as a chance to sell," Cramer stated. 

This view aligns with insights from CryptoQuant, a respected analysis firm in the cryptocurrency space. CryptoQuant has previously cautioned that such an ETF approval could push Bitcoin down to $32,000, pointing to historical trends where Bitcoin has faced corrections after surging past significant milestones.

A contrarian indicator? 

Despite Cramer's latest endorsement of Bitcoin, many analysts remain skeptical, treating his analysis as a contrarian indicator due to his track record of erroneous predictions. For instance, in October, Cramer suggested that Bitcoin was poised for a significant downturn. 

Contrary to this prediction, Bitcoin saw an impressive rally, climbing 150% in 2023 and recovering from the previous year's slump. 

With Cramer's questionable track record in mind, traders are humorously suggesting that Cramer's recent positive stance on Bitcoin might actually be a bearish signal. 

Interestingly, they do not anticipate the approval of a Bitcoin ETF to result in a sell-the-news event, contrary to Cramer's prediction.