Inverse Cramer: CNBC Stock Pundit Jim Cramer Sells Bitcoin, BTC Holders Cheer

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Yesterday, on August 3rd, CNBC host Jim Cramer declared he would sell all his Bitcoin (BTC) holdings due to fears about Quantum computing.

On July 31st, Cramer interviewed Arvind Krishna, CEO of IBM, who stated that Quantum computing would eventually be able to break into the cryptographic algorithms that run the crypto ecosystem, including the top crypto, Bitcoin. Based on these comments, Cramer said he hit the sell button on his holdings.

What is interesting about this is that some investors took to social media lauding Cramer’s decision as a bullish indicator due to the theory of Inverse Cramer – buy what he sells and sell what he buys. Cramer admits that he does not always get things right, but he has made huge mistakes in advising viewers in the past. Cramer was infamously pumping Bear Stearns just days before the investment bank collapsed. On the March 11, 2008 episode of Cramer’s Mad Money show, Cramer told a caller that Bear was fine and not to sell. He told the investor that selling was silly. Several days later, Bear was sold to JP Morgan for a fraction of its price on March 11th.

 

In 2012, Cramer advised his watchers to sell Netflix. The shares in the company surged by around 174% in the following months.

There have been other big misses.

While diminishing the credibility of the Mad Money show, the Inverse Cramer trade has become a meme, and at one point, Tuttle Capit

 

al Management launched an Inverse Cramer Tracker ETF. The fund was liquidated in 2024 due to limited interest.

One investor published a research paper on Cramer recommendations from 2018 to 2024, which showed a mixed bag of results.

In the end, do your own due diligence and don’t make investments based on finfluencers or so-called “experts,” including those on CNBC.

 



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