television presenter Jim Cramer He is known for his outlandish interpretations of the stock market and his often back-and-forth recommendations that can change from day to day. The same has been applied to the cryptocurrency market in recent years, a sector Cramer loves to hate.
Here's a look at one of Cramer's recent warnings against cryptocurrencies and how you could have benefited from betting against it.
What happened: Optimism for bitcoin BTC/USD Spot ETF is among the catalysts That caused the price of cryptocurrencies to skyrocket in recent weeks.
After a difficult 2022 for the cryptocurrency sector, valuations of many top cryptocurrencies have soared so far in 2023. This means that anyone who wrote off cryptocurrencies in late 2022 or early 2023 will likely be regret your calls or your advice that turned out to be false.
On December 23, 2022, CNBC host Cramer once again criticized the cryptocurrency market and warned anyone investing in the sector. The comments came as it was announced that FTX co-founder Sam Bankman-Fried had been released from jail on $250 million bail.
Cramer said the SEC should be more involved in the cryptocurrency market, noting that when investors look at a stock's filing, they know who the owner is, whereas with cryptocurrencies, investors don't know who the owner is.
CNBC anchor Previously owned cryptocurrency before selling everything, a decision that, he said, he announced on television and that he does not regret.
"I wouldn't touch cryptocurrencies in a million years," Cramer saying during the broadcast on December 23, 2022.
Cramer said the cryptocurrency sector has struggled with regulation and investors often see losses on their money.
"I like to keep my money in JPMorgan and on Monday I check to see if my balance is there."
Cramer said the same can't be said for cryptocurrencies because of the volatility and, based on his personal experience, it can be difficult to get the money out.
An on-screen graph showed Bitcoin prices. Ethereum ETH/USD, solarium SOL/USD, Litecoin LTC/USD and cryptocurrency exchange Coinbase Global CURRENCY.
The chart and the names of several of the cryptocurrencies prompted an angry rant from Cramer.
"I think you're an idiot. I didn't go to college to become stupid. These people who own these things shouldn't own them."
Cramer went on to say that cryptocurrencies are โmoney creation by cretins.โ
"These are worse than even the worst Nasdaq stocks."
Given Cramer's comments in December, it may have been a surprise when Cramer Recently Recommended Bitcoin about a Bitcoin mining stock on his show "Mad Money."
โI would rather have Bitcoin,โ Cramer said when asked about Marathon Digital Holdings Inc MARA.
Investors who disagree with Cramer now you can invest in it Inverse Cramer Tracker ETF SHIMwhich was released earlier this year.
When Cramer made his argument in December, investors could have bought the individual cryptocurrencies and Coinbase shares themselves.
Related link: EXCLUSIVE: It took someone to create the Jim Cramer ETF
Invest $1,000 in Crypto: An investor who went against Cramer's advice on Bitcoin and invested in the leading cryptocurrency on December 23, 2022, would probably be smiling today.
A $1,000 investment at the intraday high could have bought 0.0592 BTC. The $1,000 investment would be worth $2,010.24 today. This marks a return of 101.0% over the past 10 months.
The same $1,000 invested in the SPDR S&P 500 ETF Trust TO SPY, which tracks the S&P 500 stock index, would be worth $1,078.92 today. This marks a return of 7.9% over the past 10 months.
Each of the four cryptocurrencies and cryptocurrency platforms that Cramer criticized have risen in the past 10 months and all but one outperformed the S&P 500. Here's a look at the returns of the other assets based on a $1,000 investment:
Ethereum: 0.8150 ETH, $1,449.09 today, +44.9%
Litecoin: 15.15 LTC, $1,027.62 today, +2.8%
solarium: 82.78 SOL, $2,665.52 today, +166.6%
Coin base: 27.79 COINS, $2,028.11 today, +102.8%
This shows if an investor divides the $1,000 equally among the five assets shown to Cramer.
Bitcoin: $400.69
Ethereum: $289.82
Litecoin: $205.52
solarium: $388.89
Coinbase: $405.77
Total: $1,690.69, +69.1%
The $1,000 investment would rise 69.1% over the past 10 months, significantly outperforming the S&P 500's 7.9% return.
Read next: Exclusive: Why Cathie Wood Thinks Bitcoin Will Hit $1 Million, What Does She Know That We Don't?
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