Predicting tops and bottoms of a course is of course quite difficult, but luckily we have CNBC’s Jim Cramer. If you just do the exact opposite of what this presenter says, you’ll be fine. Now he is shouting that cryptocurrencies are going to fall even further. Good news for the bulls?
Unusual condition in the world
There is a case for crypto markets to fall even further, but the past shows that Cramer very often buys the top and sells the bottom. Now he says crypto hasn’t bottomed out yet.
In a conversation on CNBC with colleague Joe Kernen, he emphasizes that in declining financial markets you normally have high unemployment and a shrinking economy. Now we see a shrinking economy along with low unemployment. That doesn’t happen very often, and it makes it difficult to properly estimate financial markets. Cramer is most interested in crypto right now, but he is not positive:
“Crypto really seems to be imploding. Went from $3 trillion to $1 trillion. Why would it stop at $1 trillion? There is no real value win.”
“Crypto really does seem to be imploding. Went from $3 trillion to $1 trillion. Why should it stop at $1 trillion? There’s no real value there,” says @jimcramer on #crypto† “What an awful asset. NFTs sold to you. Made up.” pic.twitter.com/09e5ST8q0N
— Squawk Box (@SquawkCNBC) July 5, 2022
†Inverse Cramer ETF’
On Twitter you will find ‘Inverse Cramer ETF‘, a Twitter account that ironically keeps track of what happens to the market when the presenter says something. Cramer just happens to be very good at pointing the bottom – saying the opposite is going to happen. Now he is suddenly no longer a fan of crypto, while a few months ago he just was very positive about bitcoin (BTC) and ethereum (ETH)†
tBut this time there is something to be said for it. The dollar is slowly breaking up against almost everything else, and the US central bank is still pulling the reins hard. Cramer is therefore not the only one who is skeptical. For example, former BitMEX CEO Arthur Hayes also thinks we will see another decline. Cramer does say remarkably often the things you would lose money on, would he be right or right this time?
