Jim Cramer Endorses Bitcoin in Portfolio, but Critics Say His ‘Inverse Effect’ Holds True

On November 26, CNBC’s Jim Cramer, known for his polarizing and often controversial investment advice, made waves once again by suggesting that cryptocurrencies—particularly Bitcoin and Ethereum—should have a place in every investor’s portfolio. His endorsement comes at a time when Bitcoin’s price has recently dipped 2%, cooling off after a massive rally that saw the cryptocurrency peak at nearly $100,000. However, many crypto enthusiasts have a complicated relationship with Cramer’s advice, often invoking the so-called “inverse Cramer” effect, where his endorsements tend to precede price corrections.

Cramer’s Endorsement: A Hedge Against National Debt

During the November 26 edition of CNBC’s Mad Money, Cramer argued that Bitcoin, Ethereum, and potentially other cryptocurrencies could serve as a hedge against the growing U.S. deficit, which now exceeds $36 trillion.

“I think Bitcoin, Ethereum and maybe even some other cryptocurrencies deserve a spot in your portfolio,” Cramer said. “Maybe one day, if the deficit gets under control, I’ll change my tune.”

Cramer’s suggestion stems from his long-standing concerns about the U.S. national debt, which he believes will continue to balloon and fuel inflationary pressures. He framed crypto as an asset class that could help protect investors from these macroeconomic challenges. Despite his endorsement, Bitcoin’s price experienced a 2% drop on the same day, retreating to approximately $92,700 after briefly reaching $99,571 on November 23.

Cramer’s endorsement of crypto quickly sparked reactions across social media, where many users jokingly invoked the “inverse Cramer” effect—a meme that suggests whenever Cramer gives an optimistic view on an asset, it usually signals the opposite for the price. Cramer has long been a meme in the cryptocurrency community for his historically poor track record with crypto predictions.

The concept of the “inverse Cramer” effect is rooted in the idea that when Cramer recommends buying an asset, the market tends to go the other way, and vice versa. Given that Bitcoin dropped by 2% after Cramer’s endorsement, some crypto enthusiasts joked that he should stick to negative commentary about crypto to help boost the market.

Cramer’s Crypto Confession: A Mixed Track Record

Cramer’s relationship with cryptocurrencies has been anything but consistent. Over the years, he has gone back and forth on the asset class, at times dismissing it as having “no real value” and urging investors to sell. He famously recommended that investors get out of Bitcoin in 2018 when its price was hovering around $6,000, only to later admit that he had been wrong. In fact, Cramer has now acknowledged that he made money from owning crypto and has even built a significant position in digital assets.

On his November 26 show, Cramer admitted, “I’m going to call the top by recommending it yet again,” referring to his endorsement of Bitcoin and Ethereum. He also noted that he still holds crypto as part of his portfolio, emphasizing that “national debt worries are never going to go away.”

Despite this, Cramer expressed some frustration with the public’s reception of his crypto advice: “Weird how I’ve been recommending gold and crypto for so many years, yet they’re both near all-time highs, and I take heat anyway.”

Cramer’s comments came at a time when Bitcoin had just surged to a new high, peaking at $99,571 on November 23—its highest level since early 2022. However, the cryptocurrency market has since cooled off, with Bitcoin’s price dipping 2% on the day of Cramer’s remarks, bringing it down to around $92,700.

Despite the recent drop, Bitcoin is still up significantly over the past month, and its long-term trend remains upward, fueled by both institutional interest and growing retail adoption. Cramer’s endorsement of Bitcoin as part of a diversified investment portfolio aligns with the broader narrative of cryptocurrencies increasingly being viewed as legitimate hedges against inflation and currency devaluation, especially given concerns about the U.S. deficit.

Cramer’s Past Advice: From Skeptic to Advocate

In earlier years, Cramer was outspoken in his skepticism of Bitcoin and other cryptocurrencies. He often dismissed them as speculative and compared them to “pyramid schemes.” His views on crypto were sharply negative until recent years, when he reversed course, acknowledging the potential of cryptocurrencies as an investment and a store of value.

This shift has puzzled many in the crypto community, who are divided on whether Cramer’s advice can be trusted. His earlier statements—coupled with his infamous calls on other assets—have led some to believe that his endorsement of Bitcoin could be a contrarian indicator, signaling that the market may be due for a correction.

While Jim Cramer’s endorsement of Bitcoin and other cryptocurrencies as part of a diversified portfolio may resonate with some investors, it remains to be seen whether his recommendation will have any lasting impact on the market. The “inverse Cramer” meme continues to persist within the crypto community, where many joke that his advice often signals the opposite for price movements. Despite this, Cramer’s acknowledgment of cryptocurrency as a hedge against U.S. national debt is in line with broader market trends and growing institutional acceptance of digital assets.

Whether Cramer’s latest comments are a signal of a top or just a fleeting moment in the volatile world of crypto is uncertain. What is clear is that Cramer’s mixed track record with crypto, combined with Bitcoin’s recent price correction, will likely continue to fuel debates about the role of cryptocurrencies in traditional investment portfolios.