How Mad Money Followers Lost on a 23% Increase – Cryptopolitan

Over a short period of time, Bitcoin (BTC) experienced a remarkable increase in value, starting at $27,900 on Sunday, April 9 and rising to $30,450 on Tuesday. However, it’s likely that a majority of CNBC’s “Mad Money” host Jim Cramer’s viewers didn’t take advantage of the cryptocurrency’s impressive 23% gain. On March 14, Cramer advised his audience to avoid Bitcoin, raising the possibility that they were missing out on the opportunity to profit significantly from the digital currency’s rise.

Jim Cramer’s Controversial Advice About Bitcoin

In addition to warning viewers to stay away from Bitcoin, Cramer also urged them to sell any Bitcoin they owned. His reasoning was based on suspicions of price manipulation by Sam Bankman-Fried, a prominent figure in the cryptocurrency space. Despite not providing any concrete evidence to support these claims, Cramer suggested that the value of the digital currency could still be subject to manipulation. As a result, those who followed his advice and sold their Bitcoin holdings on March 14 may have missed out on another 23% increase in the cryptocurrency’s value.

Jim Cramer’s argument, which attempts to link Bitcoin’s value to Sam Bankman-Fried, lacks credibility. Bankman-Fried, who is currently under house arrest awaiting trial, is no longer able to manipulate the market. Furthermore, the claim that FTX, the cryptocurrency exchange founded by Bankman-Fried, dictated Bitcoin’s price is not accurate. In fact, Bitcoin played a more significant role in influencing FTX’s value than the other way around.

Cramer’s questionable track record

Cramer’s stock-picking record has also been called into question. An in-depth analysis conducted by researchers at the Wharton School of the University of Pennsylvania revealed that over a 17-year period, Cramer’s stock picks generated an annualized return of just 4.08%, while the S&P 500 increased by 7.07% during the same period. time frame. This underperformance raises concerns about the reliability of his financial advice.

Those who followed Cramer’s advice on Bitcoin in January, when he called the cryptocurrency a “sham” while it was trading at $20,688, would have missed out on a significant 46.8% increase in value. As such, it’s important for investors to do their research and approach financial advice with caution, even when it comes from high-profile experts like Jim Cramer. By critically evaluating the advice they receive and considering multiple perspectives, investors can make more informed decisions and potentially seize opportunities for significant gains in the dynamic world of digital currencies.