Jim Cramer reportedly told investors in early December that they still have time to exit their cryptocurrency holdings.
What Happened: “You can’t just beat yourself up and say, ‘hey, it’s too late to sell.’ The truth is, it’s never too late to sell an awful position, and that’s what you have if you own these so-called digital assets,” Cramer said, according to a CNBC report.
Cramer pointed out that investors shouldn’t be fooled by some coins’ inflated market capitalization and said that more marginal names including Ripple XRP/USD, Dogecoin DOGE/USD, Cardano ADA/USD and Polygon MATIC/USD are expected to fall much further, possibly to zero.
“Tether, a so-called stablecoin that’s supposed to be kinda-sorta pegged to the dollar, still has a $65 billion market cap,” Cramer said. “There’s still a whole industry of crypto boosters trying desperately to keep all of these things up in the air — not too different from what happened with bad stocks during the dot-com collapse,” he added.
Price Action: Major cryptocurrencies like Bitcoin BTC/USD and Ethereum ETH/USD were trading marginally higher on Tuesday in the backdrop of concerns regarding the Federal Reserve’s rate hike path following a better-than-expected non-manufacturing PMI data.
Last week, Cramer noted Federal Reserve Chair Jerome Powell’s inflation remarks confirmed that investors shouldn’t exit the market over recession fears. “Unless the super hawkish Fed heads who want to raise short rates to 5% to 7% are silenced, we must be ready with a quarter of one foot out the door,” he had said.
This story was originally published on Dec. 6, 2022.
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