Jim Cramer, the head of the CNBC Investing Club and the host of Mad Money, was in the spotlight this past week. The reason behind all this attention is something he tweeted in early January. On Jan. 09, Cramer urged his Twitter followers to “get out of crypto,” implying that now is a “good chance” to do so. Moreover, he compared Chinese stocks and crypto, claiming that “neither can be trusted.” While having such beliefs is normal in today’s world, considering all the controversy the crypto market was met within the past year, there is something different about Cramer’s tweets that has everyone surprised. The crypto community did not fail to notice the negative correlation between Cramer’s tweets and the market’s performance. Usually, when Cramer makes negative tweets about the crypto market, the price of Bitcoin, followed by altcoins, skyrockets. This was the case this time as well.
To make fun of his tweets, crypto Twitter was quick with creating a Twitter account. @CramerTracker is the account where they mock Cramer and his statements. Just like that, many investors in the crypto market are profiting by doing the opposite of what Cramer suggests. Crypto Twitter is now referring to this phenomenon as “The Cramer Effect.” Under the now-famous tweet, numerous crypto investors thanked Cramer for the tweet claiming that he initiated the current crypto rally.
Cryptocurrencies Rally in January
While the year 2022 was one of the worst years for the crypto market, the beginning of 2023 seems just fine. Since the start of the year until today, Bitcoin is up by 38%. On Jan. 01, Bitcoin was trading at a price of ~$16,557, while today, on Jan. 22, it holds a price of ~$22,900. While most crypto experts believe that the bear market is not over yet, this bear market rally has sparked hope and trust in the market. Moreover, after a year of scandals and red candles, such a rally is much appreciated, claims @Rager, a crypto investor. According to him, a major pullback is very likely to happen sometime soon.
In other news, the bear market seems to be coming to an end soon. According to Forbes, the average Bitcoin bear market lasts about 289 days. As per this bear market, we are in just around ~250 days until today (considering that May 2022 was the alleged beginning of the current bear market). This is a good sign since the next Bitcoin halving is just around the corner.