How Jim Cramer became the counter-indicator of Wall Street and crypto

Outspoken stock analyst Jim Cramer has become a cult figure among investors in recent years, especially in the crypto world. The phenomenon of the so-called ‘inverse Cramer’ strategy is particularly well known. Who is this man and why has he become a true meme in the crypto world in recent years? We’ll find out.

Cramer’s advice often provokes opposing reactions

Jim Cramer is the host of the CNBC program Mad Money and is known for his energetic style and outspoken investment advice. Over the years he has become a striking face in the financial media. Yet his reputation has taken an unexpected turn: his recommendations, and especially his crypto advice, often turn out to be unfavorable. This has given rise to the ‘inverse Cramer’ strategy, in which investors consciously take the opposite position to his advice.

In 2023, a special investment fund was even established, the SJIM ETF (Inverse Cramer Tracker), which explicitly responded to this strategy. Although the fund was closed again in January 2024 due to disappointing performance and low assets under management, this fund underlines the scale of the Cramer phenomenon.

The crypto market is also picking up the signal

As mentioned, Cramer’s influence extends into the crypto world. When Cramer predicts a further decline in the Bitcoin (BTC) price, this is often jokingly celebrated as a bottom signal.

Last month he predicted on X: “Crypto will rise today.” Shortly after this statement, Bitcoin’s price fell by approximately 1.4 percent. Last week, on Wednesday, he suggested that the “cabal” may be trying to keep Bitcoin above $90,000. Two days later the price stood at $80,000.

Investors are therefore increasingly using his public statements as a contrarian signal. Within stock markets, analysts also regularly refer to Cramer’s previous recommendations for stocks that subsequently fell in value.

Jim Cramer is and remains a prominent figure in the financial media, but his advice and predictions are increasingly interpreted as a warning rather than a guideline. Of course, the Jim Cramer phenomenon has a clear humorous undertone. The advice is often: take advice with a grain of salt and do your own research. But you can take Cramer’s advice with a bucket of salt.