The price of Bitcoin crashed nearly 10% on Wednesday, falling from $US45,000 to below $US41,000 in mere hours, hurting crypto’s best bull run in a year. But what, or who, could have been the culprit behind the crash? The day before, CNBC’s host of Mad Money, Jim Cramer, directed his powerful investing advice towards Bitcoin.
“You can’t kill it,” said Cramer on CNBC Tuesday, referring to the remarkable rally Bitcoin had last year. “It’s here to stay,” he said, just a day before the biggest crypto crash of the new year.
Ah, yes, the kiss of Inverse Cramer. The X account @CramerTracker has been calling out the CNBC host’s bets since 2021, and noting the curious tendency for the opposite to happen.
“Bear Stearns is fine,” said Jim Cramer in March 2008, just one week before the financial giant failed during the Great Recession. “I think you’re pretty much a visionary,” said Cramer to Sam Bankman-Fried a year before FTX collapsed and was revealed to be nothing but a massive fraud. Naive viewers may assume that Jim Cramer is simply wrong, but true fans understand the CNBC host commands the opposite of what he says to come true. Whether his powers are some ethereal connection to the finance gods, or something else, the latest showing of his inverse powers on Bitcoin is no exception.
The price of Bitcoin has been propped up in recent months by speculation that a Bitcoin ETF may soon get approved by the SEC. Coindesk reports that major financial institutions like Goldman Sachs, JPMorgan, and others are investigating how to play a key role in Bitcoin ETFs, which would mark a significant win for the cryptocurrency industry. The ETFs in question would offer a safer way for folks to invest in Bitcoin and would require large institutions to buy up a ton of digital currency. That being said, there’s nothing set in stone for the financial vehicle’s approval just yet.
Also on Wednesday, Singapore-based digital asset firm Matrixport published a research report forecasting the SEC would reject all spot bitcoin ETF applications, according to CoinDesk. Several analysts refuted Matrixpoint’s argument, as a strategist told CoinDesk that approval for a Bitcoin ETF is “a matter of when, not if.” However, some suspect this negative sentiment in a bullish environment to be the cause of the crash.
It’s difficult to tell what truly caused the crash, as Bitcoin’s price is motivated by countless factors, and it rebounded in price to more than more than $US44,000 Thursday afternoon. That being said, Inverse Cramer is a force to be reckoned with, and the cryptocurrency’s fate is still in question.