Crypto Markets Rebound as Cramer Crys Foul

American media personality Jim Cramer has been called foul in the recent turn of the crypto markets, although his pronouncements often prove to be false.

Signs have begun to emerge over the past month of a thaw in the crypto winter of that past year. So far in January, bitcoin is up nearly 30% from $17,000 to $21,000. Ethereum is also up more than 30%, while the total crypto market capitalization is back above $1 trillion. Even the sale volume of non-fungible tokens (NFTs) saw a rebound in December.

Yet, instead of acknowledging any of these developments, cryptoskeptic Cramer attributes these gains to market manipulation. However, pronouncements by financial media personalities have been known to fall widely of the mark.

Cramer’s Suspicious Call

Since the collapse of FTX, the most recent inflection point for crypto markets, Cramer has made some questionable calls about crypto. The first was his opinion of Sam Bankman-Fried. While the crisis unfolded, Cramer made several disparaging comments about Bankman-Fried, implying that crypto investors were foolish to trust him. Yet, a few months ago, like most other media outlets, they were singing the praises of Bankman-Fried, calling them “the new JPMorgan.”

Cramer, like others, believed that this collapse would trigger a wider crackdown on the part of the authorities, which would soon “sweep, By his estimation, it started on January 12 with Genesis and Gemini, which he described as “a great short squeeze run”.

However, Cramer made another prediction about crypto companies that apparently turned out to be wrong. Earlier this month, Cramer Told The SEC will not allow the purchase of Voyager assets by Binance. He argued that the SEC is “very concerned that Binance will prove to be much more fiddly than we think.” A US bankruptcy court later approved Voyager Digital’s proposed sale of its assets to Binance.US for $1 billion.

inverted crammer

In fact, Cramer’s comments are so notoriously out of line with his target that investors have created reversal indicators. Last year, there were a pair of exchange-traded funds named after the host of CNBC’s Mad Money.

While one fund will follow their advice, an “inverse Cramer” fund will do just the opposite. The inverse Cramer concept has also carried over to social media, with a dedicated page highlighting his frequent gaffes.