Here’s how much Bitcoin is down since Jim Cramer said ‘BTC is great thing to have’
As the bearish sentiment sweeps through the cryptocurrency market, Bitcoin (BTC) is leading the way in losses for the short term, in a price movement trend that aligns with the ‘Inverse Cramer’ phenomenon.
The ‘Inverse Cramer’ effect is a market theory that dictates that assets recommended by CNBC’s Jim Cramer on his Mad Money show often move in the opposite direction.
On January 28, Cramer endorsed Bitcoin’s potential, calling it “a great thing to have in your portfolio.” At the time, the maiden digital currency was trading at $102,840.
True to the ‘Inverse Cramer’ phenomenon, Bitcoin has since plunged about 7% as of press time, valued at $95,230, wiping out $50 billion from its market cap in the process.
It’s worth noting that Cramer has not always been bullish on Bitcoin and the cryptocurrency market. For instance, in January 2023, when BTC traded around $16,000, he called it a “phony scam,” claiming crypto prices were artificially inflated. Since then, Bitcoin has seen notable gains over the last two years, hitting a new all-time high above $100,000.
Similarly, in January 2024, the TV host warned that Bitcoin was potentially nearing a new price top while advising investors to exit their positions. Interestingly, the maiden cryptocurrency has surged by over 100% since then.
What next for Bitcoin’s price
Bitcoin is experiencing increased volatility as markets react to uncertainty surrounding President Donald Trump’s tariffs on imports from Canada, Mexico, and China.
Indeed, investors are concerned about the possibility of a global trade war, with Bitcoin dropping to about $92,585 on February 3. These tensions have pushed investors away from risk assets such as BTC contributing to a $2.26 billion wipeout in the cryptocurrency market amid the uncertainties.
Market sentiment remains mixed regarding Bitcoin’s next price movements, although the long-term bullish outlook appears sustainable.
In this regard, data shared by the cryptocurrency on-chain analysis platform Santiment shows that chatter about “buying the dip” has slowed, indicating that buying pressure might weaken as Bitcoin faces the risk of dropping below $90,000.
From a technical standpoint, Bitcoin is showing short-term bearish sentiment, as its 50-day Simple Moving Average (SMA) sits at $99,189, while the 200-day SMA at $77,735 suggests a bullish long-term outlook with Bitcoin well above this key level.
The Relative Strength Index (RSI) at 43.03 signals neutrality—neither overbought nor oversold—though prevailing bearish sentiment and a Fear & Greed Index of 44 suggest caution.
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