Famous stockbroker Jim Cramer talked about cryptocurrencies last Tuesday. The investor, known as a staunch ETH advocate, seems to have changed his mind. “Crypto really seems to be crashing,” Cramer said. It fell from $3 trillion to $1 trillion. So now, why stop at $1 trillion? There is no real value in this investment.” said. In fact, the investor said in April that he believed in the altcoin project while Ether was hovering at $3,000. Therefore, his change of views has created confusion in the crypto space.
Jim Cramer no longer supports this altcoin project
Jim Cramer stated that with the decline in crypto money prices, he does not look very warmly to the asset class. Also in April, he said that investors could earn 40% on the leading altcoin Ethereum. It seems Cramer’s views have changed 360 degrees. Speaking on CNBC’s Squawk Box on Tuesday, the former hedge fund manager discussed the months-long downward trend in global markets. Cramer said:
“Crypto really seems to explode. It fell from $3 trillion to $1 trillion. So why stop at $1 trillion? There has been a sharp decline in global crypto market capitalization over the past eight months. Also, a growing number of companies are at a loss due to the recent market crash. There is no real value in the crypto space. How many companies can Sam Bankman-Fried save?”
Sam Bankman-FriedLast week, Bankman-Fried’s FTX exchange entered a settlement with BlockFi amid bankruptcy issues. Under the deal, FTX acquired BlockFi for $240 million. However, another company founded by Bankman-Fried has recently stepped in. Alamada Research took action last month to save Voyager Digital. He also announced that he is suffering from his own liquidity crisis. The spillover effects of Terra’s collapse and Three Arrows Capital’s explosion increase. These events wreaked havoc on the industry and partially contributed to the recent market downturn. Thus, the troubles of a number of companies began to emerge. Then, Bankman-Fried told Forbes that many more exchanges may have gone bankrupt.
Cramer’s previous comments on Ethereum (ETH)
Cramer’s recent comments came as a surprise to some, given his previous thoughts on crypto. He explained on the Squawk Box in April that he thinks Ethereum is “awesome” and “believes” in it. He then said that investors could “easily get 35% or 40% returns.” ETH has since dropped from $2,970 to $1,100, as we reported on Kriptokoin.com. Accordingly, anyone who followed Cramer’s comments made a loss of over 60%.
Cramer also said in June 2021 that he preferred Ethereum to Bitcoin. He explained the reason for this as “the altcoin project has real use cases”. However, he had announced that he had purchased ETH and would continue to add to his holdings. At that time, Ethereum was trading at $2,000. In his bull run at the end of 2021, he advised investors to invest 5% of their funds in BTC.
Ether lost 70% of its value
Along with the rest of the cryptocurrency market and other risky assets, ETH had a tough 2022, down nearly 70% year-over-year. Major tech stocks, notably Meta, Netflix and PayPal, all reported losses of over 50% as the Fed raised interest rates and the recession escalated. However, Cramer pointed to recent crypto firm booms and the NFT market to argue why crypto has no value. However, he did not mention recent events such as DeFi trading, stablecoins, Tier-2 altcoin projects or the value of NFTs in his comments. Crypto backers often call for accumulation during a bearish period. But Cramer doesn’t seem to be one of them anymore.
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