Cryptocurrency industry appears to be imploding, according to CNBC’s Jim Cramer
Longtime CNBC host Jim Cramer lashed out at cryptocurrencies earlier today, claiming that the asset class has “no real value.”
The famous stock picker also suggested that crypto has much more room to fall after the total market cap fell below the $1 trillion mark. “Crypto really does seem to be imploding. Went from $3 trillion to $1 trillion. Why should it stop at $1 trillion?” he said during his recent appearance on CNBC.
Last week, the “Mad Money” host opined that crypto had failed as a hedge against inflation. Cramer pointed to the fact that digital assets were performing even worse than equities, calling the former “the last bastion of speculation.”
The CNBC star saluted the U.S. Federal Reserve for making significant headway in taming inflation at the expense of high-risk assets such as crypto. The “immolation” of crypto is part of the Fed’s victory against inflation, according to Cramer.
Not mincing words, he called the crypto collapse “the mother of all miseries.”
Bitcoin is down a whopping 71.67% from its record high, according to CoinGecko data. Ethereum has performed even worse, plunging by almost 80% since November.
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.
The “Mad Money” host, however, still views Bitcoin and Ethereum as “legitimate cryptocurrencies.” In January, he urged his followers to be extremely careful with Dogecoin since he is convinced that the meme cryptocurrency is an unregistered security.