Cover image via U.Today

Renowned stock picker and CNBC commentator Jim Cramer has issued a cautionary statement regarding the current market conditions, stating that it is extremely overbought at the moment.

This announcement follows a period during which Bitcoin achieved seven consecutive months of growth, marking the first time since 2012 and closing a monthly candle above the previous cycle's peak.

Speculation on April Fools' Day Prank

There is speculation circulating about whether Cramer's message is a simple April Fool's Day prank.

Other individuals have begun to ridicule the analyst's ability to make accurate predictions, suggesting that his social media posts should be viewed as signs to anticipate the opposite outcome.

Last year, Tuttle Capital Management decided to launch the Inverse Cramer exchange-traded fund, which was intended to go against the forecasts of the controversial financial commentator. However, Cramer ultimately had the last laugh when the ETF had to cease operation in January after experiencing a negative 15% return.

Evaluation of Market Overbought Status

Bespoke Investment Group recently discussed the emergence of overbought signals across all U.S.-based index ETFs.

Despite the S&P 500 index setting a new all-time high at 5,250, rising by 22% in the last six months alone, it continued to soar despite reaching its most overbought level since 2020 in December.

Due to various spot Bitcoin ETFs being introduced, the largest cryptocurrency, after breaking its traditional correlation with tech stocks last year, could lean towards mirroring major stock market indices. Consequently, a stock market correction may not be beneficial for Bitcoin.

Nevertheless, BlackRock still views Bitcoin as a potent means of diversifying a portfolio.