Bitcoin has taken a tumble since TV host Jim Cramer endorsed the premier crypto asset, with the crypto community implying the “inverse Cramer” effect is in play.
Bitcoin, the largest cryptocurrency by market cap, was on a bullish course to $100,000 last week. Notable analysts speculated the milestone was closer than ever, setting clear timelines for the price attainment.
However, the crypto community bemoaned a November 22 event in which a notable Bitcoin skeptic endorsed the asset. On the day’s Lightning Round, CNBC “Mad Money” host Jim Cramer applauded Bitcoin, calling it “a winner.”
Since then, the asset has suffered a significant downtrend, losing over $130 billion in market cap in a few days. Notably, the crypto community’s skepticisms about Cramer’s Bitcoin endorsement seem to be coming to fruition.
Bitcoin Sheds Over 5% After Cramer’s Comments
On the day Cramer called Bitcoin a winner, the leading cryptocurrency traded near $99,000 with a market cap of $1.96 trillion. Following his positive remarks, the crypto community reacted skeptically in a humorous fashion, with analyst Ali Martinez noting it was a strong sign the asset was up for correction.
Again, the “inverse Cramer” effect played out quickly, as Bitcoin has since nosedived to the current market price of $92,540. The crypto firstborn has lost 5% of its market valuation since then, with its cap dropping to $1.83 trillion.
Meanwhile, the converse Cramer predictions continue. The TV host has a reputation for making blunt speculations in the past. Cramer’s largely inaccurate predictions spurred the creation of an exchange-traded fund to trade the opposite of his calls.
Crypto Liquidation Surpasses $600 Million
Notably, the rapid Bitcoin downtrend has sparked massive leveraged trading liquidation in the past 24 hours. Data from Coinglass shows that the market capitulation has liquidated $603.24 million in the past day.
As expected, Bitcoin traders suffered the largest liquidation, losing $164.23 million to the market downtrend. About $136.9 million of the liquidated positions were long traders, while $27.33 million were late short traders.
Ethereum and Dogecoin positions also saw substantial liquidations. The data shows that $91 million and $38.22 million worth of leveraged bets on these assets left the crypto market in the past 24 hours.
Meanwhile, a whale lost $4.76 million betting on higher Bitcoin prices on Binance, the highest single liquidation in the past 24 hours.
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