Jim Cramer Says ‘Buy Fear, Not Sell It,’ Crypto Community Reacts

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As a seasoned market analyst with over two decades of experience, I have witnessed numerous financial upheavals and government shutdowns. The tweet by Jim Cramer about the potential U.S. government shutdown serves as a stark reminder of his uncanny ability to predict market reactions during such turbulent times.

According to financial analyst and Mad Money presenter, Jim Cramer, it’s highly probable that a U.S. government shutdown will occur this coming weekend.

As a researcher, I anticipate that the potential veto of the 2025 funding bill by the newly elected U.S. president could be a significant factor in the current situation. This bill, which includes salary increases and various benefits for Democratic Party congressmen, has drawn attention from tech mogul Elon Musk, who publicly expressed his disapproval of it on X.

Jim Cramer says “buy fear, not sell it”

The president is firm that Congress should approve the bill, excluding the previously mentioned additional costs and wage hikes, temporarily raising the country’s borrowing limit in the process. Failure to pass this bill could result in a short-term government closure as early as this week.

Jim Cramer shared on Twitter that he’s researched all instances of government shutdowns, starting from the time of President Bill Clinton, to guide his approach when investing during such periods. In essence, he suggested that one should “purchase in times of fear rather than selling.

Since the Bill Clinton era, I’ve researched all instances where a perceived government shutdown occurred. In these cases, the strategy was usually about purchasing or instilling fear rather than selling it.

— Jim Cramer (@jimcramer) December 20, 2024

Crypto community responds to Cramer’s call

People in the cryptocurrency world often react strongly to tweets by Jim Cramer, particularly those about Bitcoin. In fact, it’s been observed that 9 out of 10 times, the market responds oppositely to what Cramer predicts on his Mad Money show – if he predicts a fall, prices usually rise, and vice versa. So when Cramer expresses an opinion about the market or Bitcoin, it tends to have the opposite effect.

After Cramer’s tweet suggesting holding onto “fear” instead of selling it, numerous analysts, including crypto enthusiasts, started advocating for the opposite stance, urging that it might be more advantageous to sell rather than buy.

Over the last 24 hours, the world’s largest cryptocurrency, Bitcoin, has shed a large part of its gains added over the last month. Bitcoin declined by almost 10%, falling from the $102,450 zone and landing at $92,951. By now, BTC has rebounded a little and is changing hands at $95,200. The key reason for the rapid and deep Bitcoin decline was the recent statement by Federal Reserve boss Jerome Powell about the Fed planning to reduce the high pace of interest rate cutting next year. Rather than the 100-basis-point cut expected by the crypto community, the Fed plans to do a 25-basis-point cut in early 2025.

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2024-12-20 19:22