Jim Cramer of Mad Money says investors should stay away from cryptocurrencies.
- Jim Cramer recommends avoiding investing in cryptocurrencies now
- He says that the Federal Reserve called not to do “stupid things with our money”
- He commented that CNBC shouldn’t even quote cryptocurrencies
- This TV personality has had a contradictory position with crypto: love it or hate it
In the world of cryptocurrencies, there are characters who do not change their role. For example, Michael Saylor, founder of MicroStrategyis a defender of Bitcoin who says he won’t sell for anything; while economist Peter Schiff has long been a fierce critic of the crypto world.
However, there are contradictory characters, who go from one role to another practically without us noticing. It is the case of the presenter of the program madmoney of CNBC, former hedge fund manager Jim Cramer.
As recently as June, he was very enthusiastic about crypto. He said in an interview to “Make it” from CNBC:
“If you are a young person and you are thinking about cryptocurrencies, I think you are smart”
He added at the time: “I believe that cryptocurrencies should be part of a person’s diversified portfolio. I can’t tell you that you don’t have crypto. I own cryptocurrencies: I own Ethereum.”
Now, in less than three months, Cramer has radically changed his mind. He has advised investors to avoid cryptocurrencies and other speculative investments. “Don’t make memes. Don’t be SPAC. don’t get crypto”, emphasized Cramer, warning of “a giant washout of all things that are speculative.”
He specifically blames the aggressive stance of the Federal Reserve.
On this week’s episode of his hit show “MadMoney”Cramer admitted that he was wrong about cryptocurrencies.
“I think it’s time we started questioning the fundamentals of crypto“, said.
He was even more radical, wondering if CNBC should report on cryptocurrencies. “YWe won’t even need to have these quoted on the side of the TV screen.” said.
He admitted that he was wrong about crypto now that it has not functioned as a store of value.
He warned that these investments will struggle as the Federal Reserve continues its aggressive stance to combat inflation.
“Look, Fed chief Jay Powell told us that we need to stop doing stupid things with our money. That was the thrust of his speech on Friday.”Cramer said, referring to Jerome Powell’s speech in Jackson Hole, Wyoming. Powell warned that the Fed’s battle against inflation will bring “some pain.”
Cramer explained that the Federal Reserve “It’s gonna bring the pain until I put an end to the betting”. Referring to Powell’s speech, the Mad Money host stated:
“Of course, it will also hurt some good investments in the process… but we won’t see the end of this decline until we have a massive washout of everything that is speculative.”
Cramer said this includes cryptocurrencies, adding that other speculative investments investors should avoid include money-losing companies that went public through special purpose acquisition companies (SPACs) and meme stocks.
and on Twitter
He also tweeted on the subject:
The Federal Reserve tells you to sell cryptocurrencies and nfts and IPOs (Initial Public Offerings) and SPACs before they take your life savings away. Nonsense is over!!!
The Fed is telling you to sell the cryptos and the nfts and the ipos and the SPACs before they take your life’s savings. No more nonsense!!!
— Jim Cramer (@jimcramer) August 30, 2022
“What matters is that we just have to get through it intact. Don’t be a meme. Don’t be SPAC. Don’t get crypto. And he’ll get through this thicket and find himself at a much better time when we’re oversold enough for a big bounce.”Cramer described.
“This is what it looks like when the Fed gets serious.”
It is worth noting regarding Cramer that he has changed his mind about crypto several times: at first he did not like them, then he became an investor and promoted them because they seemed like a “prudent” investment and now he retracts again.
Sources: Twitter, CNBC, bitcoin.com, U.Today, File, Archive
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