Cryptocurrency Market Has Room For More Decline – Jim Cramer
The post Cryptocurrency Market Has Room For More Decline – Jim Cramer appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide
During a Squawk Box segment on CNBC on July 5, Cramer commented on the bearish performance of various asset classes in 2022. While slamming crypto as essentially worthless, He said there was “no real value in crypto” and predicted the market would tumble further.
He also stated that crypto has far to go after the total market cap fell below $1 trillion.
“Crypto seems to be imploding,” he said on CNBC. “From $3 trillion to $1 trillion? Why shouldn’t it stop at $1 trillion?”
Cramer saluted the U.S. Federal Reserve for its success in taming inflation by suppressing risky assets such as crypto. According to him, the immolation of crypto was a component of the Fed’s victory over inflation.
Cramer continued his market analysis by giving an example of dotcom bubble. He said that people were investing in companies which were not making even a single penny but still their stocks prices were reaching to moon. And at the end result was that these companies got bankrupt and people lost their money.
He compared the same situation with cryptocurrency and said that right now crypto is going through the same phase what dotcom went in early 2000. Many companies during that time raised capital by selling stocks and later on got bankrupt. So, Cramer believes that crypto has much more room to fall.
This is not the first time that Jim Cramer has spoken about his bearish views on cryptocurrency. Back in December 2020, he said that Bitcoin is in a “mania phase” and the prices are not based on reality.
Last month, Cramer predicted that the price of the largest cryptocurrency would drop all the way to $12,000. He also said that crypto should not be treated as a safe investment last month.
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