• CNBC host Jim Cramer claims Bitcoin is being „manipulated up“.
• Cramer responded negatively to whether recent distresses to traditional banks offer an investment case for Bitcoin.
• A surge in BTC price caused a rally among major cryptocurrencies and crypto-related companies following the announcement by U.S. authorities that deposits in failed banks would be protected.
Jim Cramer’s View on Bitcoin
CNBC host Jim Cramer recently claimed that Bitcoin is being „manipulated up“ when asked if recent distresses to traditional banks offer an investment case for Bitcoin. He believes there is no foreseeable use case for the cryptocurrency, despite its current surge in value.
Cramer’s Previous Support For Silicon Valley Bank
Cramer had previously suggested buying stock in Silicon Valley Bank (SVB) last month, however his recommendation has since been met with skepticism due to his history of making inverse calls which have even spawned several memes and indexes based on picking the opposite of what he recommends.
Bitcoin’s Inverse Cramer Surge
The collapse of SVB and Signature — two major lenders in the U.S. — led to a surge in BTC price, reaching nearly $25,000 — representing a 20% increase since Friday’s lows — and causing a rally among major cryptocurrencies and crypto-related companies. This was due to the announcement by U.S authorities that deposits in failed banks would be protected which makes it now considered unlikely that there will be any further rate hikes by the Federal Reserve.
Quantbase’s Inverse Cramer Index
Quantbase launched The Inverse Cramer Index on March 31st 2017 which is up 105,31% vs its benchmark since its launch date – demonstrating the success of inverting Jim Cramers recommendations when it comes to investing decisions.
Ultimately, while some investors are banking on the success of Bitcoin as an alternative asset class due to its decentralised nature, others such as Jim Cramer remain sceptical about its future prospects due its alleged manipulation at present – particularly given his own successful track record of inverting his own suggestions when it comes to investments decisions