While some remained skeptical about the crypto world, 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. 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.
Numerous people have already been shaken by the turmoil in the cryptocurrency market. Many people were shocked by the recent bloodshed that caused Bitcoin to fall below $20,000. Cramer cautioned investors to avoid the sector while they were still reeling from it. He 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 further stated,
“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.”
Jim 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 decline.”
Jim Cramer says beware of SPAC
Although he focused on cryptocurrencies, Jim Cramer made clear that it wasn’t just about them. Along with cryptocurrency, he advised investors to be cautious of businesses that went public through meme stocks or special purpose acquisition companies (SPAC).
He added,
“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.”
Despite all of this, Bitcoin was still trading at $20,277.07 with a daily rise of 0.02%, at the time of writing.