CNBC’s Mad Money host Jim Cramer is back with his bearish crypto sentiment. It’s not the first time he’s told investors to sell, but the markets took different action.
On December 5, crypto bear Jim Cramer was back, telling investors, “It’s never too late to sell.” The comments came nearly a month after he suggested selling the fund after FTX collapsed:
“The truth is, it’s never too late to sell a horrible position, and that’s what you have if you own these so-called digital assets,”
Cramer has a habit of suggesting that investors buy the high and sell the low.
IBC Group founder Mario Nawfal, who recently interviewed Sam Bankman-Fried, said he was optimistic. Several prominent crypto traders echoed this sentiment:
Jim Cramer: Sell it now!
On November 10, Cramer said, “this is your chance to get out of crypto.” Markets had fallen to a new cycle low, with total capitalization falling to around $830 billion. Bitcoin prices dipped below $15,800 and negative sentiment was pervasive.
Since then, Bitcoin has recovered around 10% to hit $17,400 on December 5. It has retreated slightly since then, but remains above $17,000 at press time.
Total capitalization increased by more than $70 billion, surpassing $900 billion three weeks after FTX collapsed.
According to CNBC, Cramer expects major cryptos such as Ripple’s XRP, Dogecoin (DOGE), Cardano (ADA), and Polygon (MATIC) to fall much further, “perhaps to zero.”
“There is still a whole industry of crypto boosters desperately trying to keep all of these things up in the air – not too different from what happened with the bad stocks during the dotcom meltdown.”
Those who took Cramer’s advice and sold Polygon (MATIC) on Nov. 10 would have missed the 17% gain he has made since then.
Futures trader “Satoshi Flipper” said Jim Cramer was the worst kind of trader:
Crypto Markets Consolidation
There was no epic crash in crypto assets, and the bottom of the cycle was very similar to the peak of the 2018 cycle.
However, the markets have entered another phase of consolidation, remaining within the range of the last three weeks.
In its weekly report, Glassnode said the magnitude of financial losses has diminished over the past few weeks as a result of leverage.
The total market capitalization is currently $889 billion, according to CoinGecko. This equates to a 1.3% drop on the day.