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In a surprising turn of events, prominent crypto lawyer John Deaton, who has been a vocal representative of XRP holders, has taken a bold leap into the world of Bitcoin. His decision was triggered by remarks made by Jim Cramer, the former hedge fund manager and host of CNBC's Mad Money program, who ominously predicted a downfall for "Mr. Bitcoin."
Alex DovbnyaWhat makes Deaton's move intriguing is his adoption of what's now known as the "Inverse Cramer Strategy." The strategy revolves around the counterintuitive premise that whenever Jim Cramer predicts a market direction, the opposite invariably occurs. If Cramer anticipates a stock's rise, it is often a sign that the stock is headed for a fall, and vice versa.
The Inverse Cramer Strategy gained so much traction that in October 2022, TUTTLE, an investment company, filed for an ETF designed to follow this unique approach. The resulting Inverse Cramer ETF is an actively managed fund specifically designed to bet against the TV host's forecasts.
In line with this strategy, Deaton's response to Cramer's bearish prediction was to invest in BTC. However, it appears that, this time, the Inverse Cramer Strategy may have faltered, leaving Deaton and others who followed suit in a challenging position. Following Cramer's televised prediction, the price of Bitcoin did indeed dip by 1.3%, settling at $26,960 per BTC, marking its lowest point in the past 10 days.
Will Deaton's unconventional approach prove the skeptics wrong, demonstrating that in crypto, even unorthodox strategies can pay off? Or will it serve as a cautionary tale, highlighting the unpredictable nature of the market?
Tomiwabold Olajide
Yuri Molchan
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Dan Burgin