The well-known anchor of the CNBC network, who was once a fan of Bitcoin and believed that digital currencies should form a small part of people’s investment portfolio, now more than a month after the crisis of the FTX exchange and its effects on the market, he has found a different opinion. .
To Report CNBC’s Mad Money host Jim Cramer told investors on Monday that they still have time to sell their cryptocurrencies.
You can’t blame yourself and say, “Hey, it’s too late to sell.” The truth is, it’s never too late to sell a crappy investment position, and if you own these so-called digital assets, you should.
The collapse of bankrupt exchange FTX, which was valued at $32 billion at its peak, has put the cryptocurrency industry under the spotlight, causing mounting losses in a market that has seen prices fall due to interest rate hikes by the U.S. Federal Reserve.
Cramer warned against staying in the high-risk (speculative) asset space as the Federal Reserve continues to tighten policies. He reiterated his argument and said that investors should not be fooled by the false (inflated) market value of some cryptocurrencies.
He added that he expects the price of cryptocurrencies including Ripple, Dogecoin, Cardano and Polygon to fall much further and may even go to zero.
Kramer added in the end:
Tether, a so-called stablecoin whose value is supposed to be somehow tied to the US dollar, still has a market cap of $65 billion. There is still an integrated industry of cryptocurrency supporters working hard to keep the value of all these assets high. This situation is not unlike what happened to junk stocks during the dot-com crash.