Jim Cramer. Source: CNBC
CNBC Mad Money host Jim Cramer’s name has become almost synonymous with finance television. But that hasn’t stopped him from giving some regrettable investment advice over the course of years. Despite being a prominent personality in the finance world for decades, his deeply ill-fated predictions have attracted significant ire from the community. On a lighter note, another well-known trader is now inverse trading against him.
Crypto trader AIgod is the one behind the cheeky tweet where he has revealed flipping to a long position on his inverse Jim Cramer account after the latter reflected bearishness on Nasdaq. He went on to say that the CNBC host’s bearish take on Nasdaq is a “good indicator for crypto.”
Algod is the trader who famously bet Terraform Labs CEO Do Kwon $1 million about LUNA’s fall just weeks before the collapse. The trader has now revealed the inverse Cramer account had “officially doubled” for the first time. In fact, it has hit a net value of $101,440.71, up from the initial amount of $51,470.56 on July 19.
Even though Cramer is a very prolific stock picker, his questionable calls in the past prompted many to counter-trade him. But what started as a running joke in the space resulted in an “Inverse Cramer” movement that first gained prominence on Reddit and Twitter.
The increased traction on various social media channels subsequently led to something called “Inverse Cramer ETF,” one of many iterations where investors are promised market-beating performance via a passive investment vehicle. The rationale behind it is quite simple: doing the opposite of what he recommends.
Jim Cramer predicted that Bitcoin and Ethereum’s sell-off to be over in January this year. While this did not age well, he later said that the line is drawn at the $20,000 level. This prompted many crypto enthusiasts to then predict that Bitcoin’s price to follow more downtrend, which eventually did end up happening.
During an appearance on CNBC’s Squawk Box, the superstar host made a bizarre comment that crypto “has no value.” Not many were amused, and he was slammed by the community for his “inconsistent” predictions.
What’s interesting is that CryptoLaw founder John Deaton said that Cramer’s statements could be the most bullish sign for crypto in weeks. Sentiment slightly improved as well.