American TV personality and host of ‘Mad Money’ on CNBC Jim Cramer has advised crypto investors to sell their digital assets, noting that it is never too late to sell as prices continue to plummet.
The former hedge fund manager disclosed that now is the best time for investors to exit the crypto market, as he predicts a collapse in 2023.
In his words, “You can’t just beat yourself up and say ‘hey, it’s too late to sell.’ The truth is, it’s never too late to sell an awful position, and that’s what you have if you own these so-called digital assets.”
He further added that investors shouldn’t be deceived by some coins’ inflated market capitalization while predicting that cryptocurrencies such as Polygon, XRP, Dogecoin, and Cardano will possibly fall to zero.
“Tether, a so-called stablecoin that’s supposed to be kinda-sorta pegged to the dollar still has a $65 billion market cap.
“There’s still a whole industry of crypto boosters trying desperately to keep all of these things up in the air, not too different from what happened with bad stocks during the dotcom collapse”, he said.
Jim Cramer’s advice comes not too long after Bitcoin loses its volatility again, falling to $17k, and showing signs of a further decline.
He joins the likes of other investors such as Warren Buffet, Mark Mobius, etc who have predicted more woes for the crypto industry.
Also, Senior commodity strategist for Bloomberg Intelligence Mike Mcglone believes that cryptocurrencies are now going through their last phase before hitting rock bottom. He adds that it will be tough for investors and companies to survive this phase.
Meanwhile, Venture capital investor Tim Draper shares a different opinion, as he is optimistic about the rise of Bitcoin, predicting it to hit $250,000 next year.
Following the FTX collapse that has no doubt sent shockwaves to the crypto industry, the prices of virtual assets have become highly volatile with the market experiencing a bloodbath.
According to Coinshares, Europe’s largest digital asset investment and trading group, it disclosed that investments in crypto funds fell by $11m last week after an outflow of $23m the week before.
Bitcoin investments rose by $11m, and Ethereum fell by $4m. Investments in funds that allow shorts on bitcoin fell by $11m. Trading volume was $753m, compared to an average of $2bn a year ago, suggesting low investor engagement.
Analysts disclose that Bitcoin drop below $16K (-6%) could devastate speculators’ positions, delaying a potential market recovery for many more months. On the other hand, a rise above $18K (+6%) could open a direct track to $21K.
The collapse of FTX has been described as the biggest string of big crypto-related failures this year. It sparked a cryptocurrency collapse that has left an estimated 1 million creditors facing losses in billions of dollars.
The FTX upheaval has put immense pressure on exchange platforms everywhere, with users nervous about exchange holdings, as few analysts disclose that rebuilding the market confidence will likely take months or years.
