The crypto-verse has fetched a lot of critics since the very beginning. An array of officials spoke up about how Bitcoin [BTC] was the currency of the dark web. However, over time, BTC proved to be much more than its association with the dark side of the internet. In the meantime, some warmed up to the industry while a few others stayed dubious. The host of CNBC’s Mad Money, Jim Cramer has been quite vocal about his love-hate relationship with crypto. Bringing out the latter, Cramer urged the community to stay away from speculative assets like crypto.
The turbulence in the crypto market has already shaken an array of people. The recent carnage that pushed Bitcoin below $20K came as a shock to many. While investors were yet to recover from it, Cramer warned them to stay away from the industry. He went on to link it to the current tightening cycle of the Federal Reserve.
Last week, Fed Chairman Jerome Powell noted that they have been trying to bring down inflation. In the meantime, he alerted American businesses and households that there would be “some pain” during the process. 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.”
In addition to these businesses and households, investments in crypto would also endure some pain, Cramer noted. However, he also believed that the world wouldn’t “see the end of this decline until we get a giant washout of all things that are speculative.”
Crypto and other speculative parts of the market should be dodged
While he did stress on cryptocurrencies, he pointed out that it wasn’t limited to them. Alongside crypto, he wanted investors to stay wary of companies that went public either through special purpose acquisition companies [SPAC] or meme stocks.
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.”
Amidst all of this, Bitcoin had managed to reclaim $20K as it was trading at $20,405, at press time.