- CNBC’s Jim Cramer urges investors to exit crypto
- Cramer believes XRP, Cardano, MATIC and Dogecoin are primed for further decline and could go to $0.
- Cramer warns investors against staying in speculative assets while the Fed tightens monetary policy.
CNBC’s Jim Cramer has urged investors to sell their cryptocurrency holdings, saying, “It is never too late to sell,” according to an official Twitter post by a popular user.
In a Monday segment, former hedge fund manager Jim Cramer told investors that they still have time to sell their crypto holdings, urging them not to beat themselves up with the thought that it is too late to sell. According to the American stockbroker, “it is never too late to sell an awful position,” adding that an awful position is what you have if you own the so-called digital assets.
Jim Cramer hosts CNBC’s Mad Money and is an anchor on Squawk on the Street. He is also the founder and senior partner of Cramer Berkowitz and a former hedge fund manager, which explains why his commentaries carry so much weight.
In the segment, the CNBC host labels cryptocurrencies “speculative assets” and “so-called digital assets.”
Cramer Warns Investors About Their Crypto Positions
Cramer’s sentiments come from the collapse of the bankrupt crypto exchange FTX, worth $32 billion at its peak. With the destruction, the crypto space has been subjected to the hawkish eye of regulators, government bodies, and financial experts. The backlash from all these hawks has spurred mounting losses in a market already suffering from the pummeling interest rate hikes by the Federal Reserve.
This is not the first time Cramer warns investors against their crypto positions. In the past, the television personality and author cautioned against staying in speculative assets while the Federal Reserve continued tightening the economy.
Reiterating his argument, Cramer also noted that investors should be aware of the inflated market capitalization of specific coins, adding that he expects more marginal names to fall much further, potentially hitting $0. Among the projects he mentioned include Ripple (XRP), Dogecoin (DOGE), Cardano (ADA), and Polygon (MATIC).
Bringing reference to Tether, Cramer said, “a so-called stablecoin that is supposed to be kinda-sorta pegged to the dollar still has a $65 billion market cap.” TerraUST had de-pegged in May this year and fell to $0 within three days. Cramer claimed that Tether could also face a similar fate along with other stablecoins in the market.
According to the former hedge fund manager, a whole industry of crypto boosters is desperately trying to keep all of these things up in the air. In his opinion, these are similar to what happened with bad stocks during the dot-com collapse.
Cramer Is Known For All The Wrong Reasons In Crypto
Cramer is known for all the wrong reasons in the crypto world, with a consistent record of giving wrong predictions. Notably, several investors do the opposite of what he conveys. In October, Cramer was seen shedding tears on his show and issued a public apology for his wrong predictions about Meta (Facebook) stocks.
While the stock market community began seeing his wrong predictions only recently, the crypto sphere knows Cramer all too well. He was called out in 2020 and again in June of 2021 when Bloomberg analyst Eric Balchunas criticized his erratic predictions after Cramer referenced cryptos as having “no real value.”
Dogecoin co-founder Billy Markus is also on record urging Cramer to stop giving price predictions in June 2022, telling him, “Jim, ya gotta shut up sometimes.” Journalism professor Alan Deutschman had described Cramer’s investment style as “chameleon-like and erratic.”
Accordingly, Cramer’s financial advice has been christened ‘Inverse Cramer ETF,’ which suggests that the markets will go in the opposite direction after his predictions.
There have been several instances when investors counter-traded Cramer’s predictions and made money.
Crypto Market Back Treks in 2022
The cryptocurrency market has remained on the back foot for 12 months straight this year. The bear markets have been severe and detrimental following the TerraUST and Luna crash, sending them to zero. In the aftermath of these catastrophes, leading cryptocurrencies are still on shaky ground, and the FTX fallout has worsened the market further.
