Bitcoin dips 2% as Jim Cramer backs crypto in portfolios

Bitcoin (CRYPTO:BTC) experienced a 2% decline, dropping to approximately $92,700, on the same day CNBC's Jim Cramer endorsed cryptocurrencies as a viable addition to investment portfolios.

Cramer’s endorsement, made during the November 26 edition of Mad Money, comes amid his reputation for controversial investment advice, which some believe often results in opposite outcomes—a phenomenon dubbed the "inverse Cramer effect."

Cramer emphasized the value of cryptocurrencies like Bitcoin and Ethereum (CRYPTO:ETH), suggesting they could act as a hedge against the growing U.S. national debt, which now exceeds $36 trillion.

“I think Bitcoin, Ethereum, and maybe even some other cryptocurrencies deserve a spot in your portfolio. Maybe one day, if the deficit gets under control, I’ll change my tune,” he stated.

Bitcoin, which recently peaked at $99,571 on November 23, has seen a cooling period following its recent rally.

Online users were quick to invoke the "inverse Cramer" theory, suggesting that his endorsement might negatively influence the market.

One user humorously requested Cramer to only discuss crypto's drawbacks.

“I’ve liked crypto for a very long time, mostly because I know there’s a huge constituency of investors who want to buy something that can protect them from our government’s busted budget,” noted Cramer, addressing his ongoing support for cryptocurrencies.

He also admitted to still holding crypto, citing his concerns about the persistent issue of national debt.

“I’m going to call the top by recommending it yet again. Weird how I’ve been recommending gold and crypto for so many years, yet they’re both near all-time highs, and I take heat anyway,” the Mad Money host added.

At the time of reporting, the Bitcoin (BTC) price was $93,265.85.