Since its inception, the crypto-verse has drawn a lot of criticism. Numerous government representatives discussed how Bitcoin (BTC) was the dark web’s currency.
But as time went on, it became clear that BTC was much more than just a symbol of the shadowy internet. While some remained skeptical, some people warmed over to the industry in the interim.
Jim Cramer, the host of CNBC’s Mad Money, has spoken out frequently about his love-hate relationship with cryptocurrency. Cramer brought out the latter, advising the community to steer clear of speculative investments like cryptocurrency.
Numerous people have already been shook by the turmoil in the cryptocurrency market. Many people were shocked by the recent bloodshed that caused Bitcoin to fall below $20,000. Jim Cramer cautioned investors to avoid the sector while they were still reeling from it. Jim Cramer continued by relating it to the Federal Reserve’s current tightening cycle.
Jerome Powell, the chairman of the Fed, stated last week that efforts have been made to lower inflation. He warned American homes and companies that the procedure will cause “some pain” in the interim. He added:
“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 pointed out that investments in cryptocurrencies would experience some pain in addition to these households and enterprises. But he also thought that until there is a massive washout of anything speculative, the world won’t “see the end of this downturn.”
Avoid crypto and other speculative market segments – Jim Cramer
Although he focused on cryptocurrencies, he made clear that it wasn’t just about them. Along with cryptocurrency, he advised investors to be cautious of businesses that went public via meme stocks or special purpose acquisition companies (SPAC).
He further said:
“What matters is that we just have to get through it intact. Don’t get memed. Don’t get SPAC’d. Don’t get crypto’d. And you’ll get through this thicket and find yourself in a much better time when we are sufficiently oversold for a huge bounce.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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