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- 1 CNBC host says legendary investor Larry Williams sees more downside.
- 2 Williams previously called the mid-January BTC peak amid an ongoing slide.
- 3 JPMorgan also forecasts a continued slump tied to GBTC outflows.
CNBC stock picker and cryptocurrency commentator Jim Cramer transmitted a gloomy Bitcoin price outlook on January 19th from iconic investor Larry Williams. Cramer warned his social media followers that Williams expects crypto’s bear market to have considerably more room to run.
The view builds on Williams’ earlier prediction of a significant Bitcoin peak in January. With prices sliding since then, his call appears prescient so far.
Rising Stature
Cramer amplifies Williams’ depressing verdict as the CNBC host aims to rebuild credibility around crypto analysis after previous snafus.
Whereas Cramer earned mockery last year for overly bullish forecasts and failed price targets, his relaying of Williams’ cautious perspective won plaudits for its timely accuracy.
Skeptics started taking Cramer more seriously on January 12th when he quoted Williams calling an imminent drop from Bitcoin’s local highs around $18,500. Prices have fallen dramatically since then, lending credence to Williams’ chart readings.
History of Dubious Calls
Host of CNBC’s investing-focused Mad Money show Cramer developed an infamous reputation for stock picks generating inverse returns.
He carried this track record into the crypto arena, routinely touting major rallies before devastating price crashes.
Besides erroneously betting big on the crypto market bottoming during 2022’s plummeting environment, Cramer drew special flack for an April 2022 tweet claiming “Bear market almost over” days before Bitcoin plunged below $30k.
However, as transmitted by a humbler Cramer, Williams’ latest downbeat diagnosis suddenly marks one of the TV figure’s few prevailing crypto predictions.
JPMorgan Analysis Aligns
While Cramer’s kingdom lies in televised entertainment analysis, heavyweight financial researchers at JPMorgan largely concur with Williams on Bitcoin’s near-term weakness.
The international investment bank’s analysts highlighted immense capital outflows from Grayscale’s GBTC trust, tracking Bitcoin as a looming driver of further declines.
JPMorgan pointed to GBTC’s stunning $700 million product redemptions over four months, indicating waning institutional demand. Since September, the product saw half its assets exit as managers liquidate Bitcoin holdings.
GBTC traded at a nearly 40% discount to net asset value in January, emblematic of fading interest that should pressure Bitcoin lower based on JPMorgan’s breakdown.
Technical Focus
Rather than obsessing over fundamentals like JPMorgan, Larry Williams prioritizes historical price action and momentum signals when forecasting market moves.
The 50-year trading veteran emphasized his technical prowess as early as the 1980s when he pocketed over $1 million in profits betting on soybean futures.
Williams later won the prestigious Robbins World Cup Championship futures trading contest in the mid-1980s, cementing his stature analyzing commodities, currencies, and stocks technically.
His recent, accurate reads on crypto markets, like pinpointing Bitcoin’s January fall, saw enthusiasts urging Cramer to keep broadcasting Williams’ opinions.
Conclusion
Although CNBC host Jim Cramer spent 2022 building a reputation for dramatically mistiming cryptocurrency predictions, his recent relaying of Larry Williams’ caution appears more aligned with prevailing price action.
Williams’ technically-driven warnings of waning Bitcoin momentum and JPMorgan’s fundamental analysis citing immense GBTC outflows signal that crypto’s bear market likely continues.
For an embattled Cramer trying to salvage legitimacy around crypto commentary, aligning with an accurate veteran trader like Williams and respected institutional researchers offers a path to partial redemption.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
