Betting Against Jim Cramer: Attorney Invests in Bitcoin After Forecasts of Decline
Attorney John E Deaton, who is representing thousands of Ripple (XRP) investors in a lawsuit against the US Securities and Exchange Commission (SEC), recently invested in Bitcoin (BTC) after hearing Jim Cramer’s views on the cryptocurrency. Cramer, the popular TV host of CNBC’s financial show “Mad Money,” predicted a downfall for Bitcoin in response to billionaire investor Paul Tudor Jones’ support for the asset.
Deaton’s decision to invest in BTC immediately after Cramer’s forecast received praise from many XRP users. This is not surprising, as Cramer’s history of crypto forecasts has been off-mark in the past. He has often advised investors to sell BTC or other digital currencies, only to see them surpass his predictions later.
One notable instance was in December last year when Cramer urged people to sell their “awful” crypto positions and exit the ecosystem. At that time, the price of BTC was around $17,000, but it has since risen above the $27,000 mark.
At the beginning of 2022, Cramer seemed more bullish on crypto, suggesting that the selloffs of BTC and Ethereum could be over and hinting at a possible bull run. However, the following months turned out to be devastating for the industry, with events such as the Terra crash, the Celsius Network bankruptcy, and the FTX meltdown. These incidents had a negative impact on the leading digital asset, causing its price to collapse below $16,000 on multiple occasions.
The phenomenon of Cramer’s influence on Bitcoin has come to be known as the “Jim Cramer Effect.” While his forecasts may have some short-term influence on the market, investors should take them with caution and conduct their own research. Deaton’s move to invest in BTC after Cramer’s bearish stance demonstrates the skepticism that many have towards his predictions.
In the volatile and unpredictable world of cryptocurrencies, it is essential for investors to stay informed and make decisions based on their own analysis rather than relying solely on the opinions of TV hosts or financial experts. The crypto market has proven time and again that it can defy expectations, making it imperative for investors to stay agile and open-minded.