Jim Cramer is an influential personality in the media industry. He is an author, trader, and host of the CNBC show Mad Money, among many other attributes. He is equally influential in the crypto market for his prediction and the “inverse Cramer index.” Today’s highlight became his newest prediction, in which he warns of an upcoming crash, but investors are not worried. Let’s discuss the situation.
Jim Cramer Predicts Crash, But Investors Celebrate Reversal
Cramer posted on X earlier in the day, saying, “Truly a hideous opening. Just a total washout coming.” Although his words were limited in this post, his followers instantly understood his reference to the global market crash, which could also influence the crypto market, which is already in the consolidation phase. The post refers to the financial market’s poor performance since the beginning of the year before predicting a crash.
The X post has received over 850k views with 1.8k reshares and 1.3k comments. However, none showed worry or concerns, but somewhere short of celebrating due to the inverse Cramer index and investors’ belief that things would go opposite to what this crypto analyst had said.
This index has been used for many years, and there’s even an exchange-traded fund, SJIM, which bets on the opposite of the Mad Money host’s prediction. Interestingly, the inverse Cramer index is defined as the same when the market behaved opposite Jim Cramer’s prediction. This is why investors see market recovery after this.
Will Crypto Market Recover After Kramer’s Prediction?
Overall market conditions and Coinglass’s liquidation data of $400M confirm the crypto market crash today, which occurred due to the Bitcoin price drop, increased uncertainty, whales, institutional selling, and much more. Although analysts had anticipated uncertainty around Donald Trump’s inauguration day, the bearish outlook seems more dominant, with macroeconomic events pushing the assets down.
GM!#BTC Liquidation Heatmap(48 Hour)
100x long got liquidated
Liquidity Grab .https://t.co/xtuMc5F2lw pic.twitter.com/hRWvM4kBeb
— CoinGlass (@coinglass_com) January 13, 2025
This is why Jim Cramer’s crash prediction today enthused investors who wish for recovery. However, global economic events and Bitcoin struggles are the most significant barriers to reversal. Some analysts, like Peter Brandt, fear the BTC price crash to $77K as the charts form the classic H&S top pattern. If this happens, the bears will completely take over the market, and despite Cramer’s prediction, it will take weeks or even months to recover.
However, the investor could benefit if BTC bounced off the $90,804 support level. If this happened, analysts see Bitcoin price hitting new ATH past $108k mark.
Here’s What To Remember
Jim Cramer’s crash prediction hit after the crypto market dropped heavily today. Instead of concerns, investors hype this prediction due to popular saying that the outcome will contradict what Cramer has said. However, due to delays in upcoming FED rate cuts, Trump’s inauguration event, and other macroeconomic events affecting the market, no significant factors favor the market’s recovery. Analysts believe Bitcoin’s recovery and surging above the support level of $90,804 can turn things in the bulls’ favor.
The post Jim Cramer Warns Crash, Will Crypto Market Reverse? appeared first on CoinGape.
