CNBC’s Jim Cramer urges crypto investors to stay away from Shiba Inu (SHIB) and Dogecoin (DOGE). CNBC Mad Money host has issued a new warning to crypto investors amid the Fed’s tightening cycle. Here are the details…
Jim Cramer urges investors to stay away from SHIB, DOGE
CNBC’s Mad Money host Jim Cramer urged investors to “stay away from speculative assets like cryptocurrencies” as the US Federal Reserve continues its efforts to curb rising inflation in the US. Cramer argued that Fed chairman Jerome Powell’s speech last week meant that Americans stopped investing in riskier assets. He highlighted meme coins like Shiba Inu (SHIB), Dogecoin (DOGE) and other top cryptos including Polkadot (DOT). Cramer used the following statements in a video broadcast by CNBC:
Look, Fed chairman Powell told us we need to stop doing stupid things with our money. That was the impetus of his speech on Friday… Until he puts an end to gambling, the pain will come. Subtext and that’s important. I want you to stay away from Dogecoin, Polkadot, Avalanche, DAI, Polygon, Shiba Inu, Avalanche, Uniswap, Cosmos, Optimism and a few other weird stuff.
Bitcoin is no longer a store of value
Cramer also stated that he no longer believes in the argument that Bitcoin can be used as a store of value, as the asset class has drastically dropped after the Fed’s recent tightening cycle. “This is what the Fed looks like when it gets serious,” Cramer added. “The important thing is that we have to get through this solidly. Don’t buy meme coins. Do not take SPAC. Don’t buy crypto,” he said. Besides cryptocurrencies, the Fed’s quest to curb rising inflation has also affected other financial instruments such as stocks.
Cramer noted that Fed chairman Powell will continue to inflict more pain on investors until inflation drops drastically. “We won’t be able to see the end of this decline until we’re cleared of all that is speculative,” Cramer said. He also suggested that investors should avoid entering money-losing firms that go public through special purpose buyout companies (SPAC) and meme stocks. Cramer’s recent crypto-related statement is contradictory, as he has previously encouraged investors to be at least a little bit crypto investors.
Will crypto investors heed Cramer’s warning?
Interestingly, there is a possibility that investors did not heed Cramer’s warning following a Coinbase issue earlier this month. Coinbase was under investigation for facilitating the trading of unregistered securities. Therefore, Cramer hinted that crypto prices could fall. But contrary to his argument, crypto prices rose the following week. On top of that, investors criticized Cramer’s comments.
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