Bearish Sign for Bitcoin, CNBC’s Jim Cramer Says ‘Buy The Dip’

Jim Cramer’s propensity to making inappropriate comments led to creation of a fund seeking to bet against him.

Michael Burry tweeted “Sell” while Jim asked to “Buy the dip”

Tuesday night, Michael Burry, the Scion Asset Management hedge fund manager who correctly predicted the financial collapse of 2008, tweeted the word “Sell.” Burry did not go into further detail, but it is simple to fill in the spaces. A value-oriented investor like Burry found it difficult to stomach the rise prices of assets like bitcoin and the ARK Innovation ETF, which appeared to be a run for the exits on the belief that the Fed would soon switch to rate reduction.

Jim Cramer, on the other hand, says that it appears as though a bull market is already underway. “If we’re in a bull market, and I think we are, you have to prepare yourself,” Cramer said. His propensity for making inappropriate comments has led to the creation of a fund that is requesting permission from the Securities and Exchange Commission to bet against his opinions. The CNBC analyst continued, “We have to get ready for the down days now because in a bull market they’re purchasing opportunities.

There’s a chance that neither Burry nor Cramer is accurate.

The employment cost index decelerated to a 1% quarterly rate, which was below estimates and crucially below the 1.2% of the third quarter, according to statistics released on the last day of January, which caused equities to soar. However, the index is growing 5.1% year over year at the same time. Barry Ritholtz of the Masters of Business programme asked Renaissance Macro Research’s head of economics Neil Dutta what the Fed should make of that figure. Apparently, the Fed sees the labour markets as the channel for inflation.“

You’re really talking about an inflation environment of three and a half percent-ish if salary growth is running at, say, 5% right now, and productivity is at 1%,”Dutta said. Later, Dutta—who began his career at Merrill Lynch with David Rosenberg—returned to the subject. It will be challenging for the Fed to reduce rates if wage inflation remains around 4.5 to 5%. I mean, I hate to say it, but it basically implies that the disinflation you’ll experience this year will also be temporary. If Dutta is right, the Fed won’t switch to rate decreases in the second part of the year, which the stock market is anticipating.

The Schiff/Cramer effect

The latter is a well-known advocate of gold and rightly advised that people should turn to the precious metal. While BTC has surged over 30%, its valuation has only climbed by 0.5% since mid-January. Investors should liquidate their bitcoin assets in early December, according to Cramer. At the time, Bitcoin was trading at $17,500; today, it is currently trading around the $23K mark.In September 2021, Cramer advised investors to liquidate their BTC holdings. For others who disregarded the advise, it turned out well because the asset tapped an ATH of approximately $70,000 two months later.

In January of last year, he said that because the market correction might be finished, people should join the ecosystem. 2022, on the other hand, was disastrous for the cryptocurrency industry and the top digital asset.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing