Jim Cramer’s Bitcoin Buy Call Takes a Hit—But He Stands by It

Key Takeaways

• Jim Cramer defends his crypto stance despite criticism and the “Inverse Cramer effect.”
• Cramer claims crypto is a hedge against government financial policies, like gold.
• He also discusses how his support for crypto has been long-standing and personal.

Jim Cramer, the veteran financial journalist best known for his role on CNBC’s Mad Money, is once again addressing the meme that has become a hallmark of his career—the “Inverse Cramer effect.”

Despite a recent dip in Bitcoin’s (BTC) price following his call to buy, Cramer remains confident in his stance on the asset.

Cramer Says He Owns Crypto

On his daily show , Cramer acknowledged the jokes and online commentary surrounding the inverse Cramer effect but brushed it off, stating that he has thick skin and remains unfazed by the trolling.

Cramer emphasized that he has long been a supporter of Bitcoin, citing it as a hedge against government financial instability.

“I’ve liked crypto for a very long time, mostly because I know a huge number of investors want to buy something that protects them against our government-busted budget,” Cramer said.

He further explained that crypto, like gold, cannot be confiscated by the government, positioning it as a safe store of value in times of economic uncertainty.

Drawing a historical parallel, Cramer referenced President Roosevelt’s 1933 executive order that confiscated gold from U.S. citizens to stabilize banks during the Great Depression.

Crypto is the best bet right now, Cramer argued.

“I own some crypto, and I have held them for ages as a hedge against the idea that someone in the Treasury does something crazy.”

Despite crypto’s ongoing volatility and the market’s relatively young status, Cramer remains convinced that it will only grow in importance as a tool for financial independence.

The “Inverse Cramer Effect” and the Crypto Community

The “Inverse Cramer effect” is a well-known internet phenomenon: it refers to the tendency for financial assets recommended by Cramer to underperform after his endorsement.

Over the years, the concept has become a running joke, especially in the crypto community.

Cramer’s recent Bitcoin recommendation, made when the price was approaching $100,000, led to an immediate 8% drop.

The incident reignited online discussions about the Inverse Cramer effect , with some crypto enthusiasts gleefully pointing out that following Cramer’s advice is often the opposite of profitable.

The Inverse Cramer theory has become so prevalent that some have turned it into a strategy.

One crypto proponent claimed that the Inverse Cramer effect has a roughly 96.9% success rate when it comes to predicting market movements, especially in the short term.

Others have even launched an “Inverse ETF” fund designed to profit from going against Cramer’s recommendations.

However, despite its initial buzz, the inverse ETF has failed to live up to expectations.

The fund’s failure , set to be liquidated less than a year after launch, is another reminder that not all market trends—especially those based on internet memes—can deliver consistent returns.