Jim Cramer Could Be Behind Bitcoin’s Latest Correction; Find Out

NEW YORK – Bitcoin’s latest failure to firmly breach the symbolic $40,000 threshold coincided closely with an enthusiastic price call from CNBC host Jim Cramer – adding to suspicion of the so-called “Cramer effect” influencing crypto markets.

At the time of Cramer’s pronouncement on Twitter this Tuesday that Bitcoin seemed strong enough to leave old price floors behind, BTC hovered solidly around $40,000 after approaching the mark earlier.

Yet within a day, Bitcoin faced selling pressure again, tumbling under $39,000 in a snap downward correction seemingly triggered by Cramer’s comments.

The Uncanny “Cramer Effect”

Cramer’s optimistic high-time-to-buy price predictions have historically accurately predicted market tops and reversals across several assets, including stocks and cryptocurrency.

And this week’s Bitcoin stumble after he spotlighted its strength appears as another entry in the eerie catalog of reversals following the market pundit’s stamps of approval.

“I’ve learned that whenever Cramer says one thing, it’s almost a guarantee that the opposite occurs shortly after,” said crypto trading firm Cooper Turley. “This time is no different, it seems.”

$40K Again a Bridge Too Far

Bitcoin’s failure to firmly crack critical perception barriers like $40,000 this year hasn’t been for lack of trying.

The largest cryptocurrency by market cap has repeatedly neared – but failed to move beyond – the landmark level in 2023, lacking enough momentum to make $40K convincingly just another price floor rather than a stubborn resistance point.

Despite positive sentiment once more, this week’s aborted climb highlights the technical and market psychology obstacles still preventing Bitcoin from sustaining higher ranges.

Poised for Eventual Breakout?

Yet some still believe that BTC is primed for an eventual breakout on the back of ballooning network fundamentals.

Last year, the long-awaited Bitcoin spot ETF launch brought institutional hopes of fresh inflows – hopes that are still unrealized, with BTC moving sideways since then.

However, eyes now look ahead to Bitcoin’s next halving event, slated for early 2025, which will cut block rewards again and constrict new supply issuance.

Past halvings precipitated mega bull runs by raising scarcity, and analysts like Benjamin Cowen argue that another perfect storm of low supply and higher demand is slowly brewing.

Conclusion

So, yet again, the capricious influence of TV personality Jim Cramer appears to have popped Bitcoin’s latest uptrend – his seeming crypto price hex striking one more time this week.

Still stuck under $40,000, technical momentum and positive perception need to be improved for BTC to sustain a definitive push higher.

Yet network fundamentals continue growing, and faith persists for factors like the looming halving becoming the catalyst that finally lets Bitcoin take flight to new heights down the road.

For now, though, Cramer’s call proved another top signal – sending the crypto bellwether firmly back into its 2023 range as fickle sentiment sways short-term price action.

Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.