The Bottom Is Here: CNBC Host Jim Cramer Says Cryptocurrencies Have 'No Real Value'
Given his track record, some in the crypto community believe the market bottom may now be in after CNBC host Jim Cramer said “cryptocurrencies have no real value” and predicted further market declines.
Cramer, the host of CNBC's Mad Money show, is known for his investment advice on the show, and is also well known in the crypto community, but he is famous because his stock and cryptocurrency investment advice often backfires.
His predictions and his love-hate relationship with cryptocurrencies have become popular memes in the crypto community over the past few years.
On July 5, Cramer commented on the bear market performance of various assets in 2022 on CNBC's Squawk Box show. He said the industry he's "most interested in" right now is cryptocurrency, which he blasted as largely worthless and predicted more havoc to come.
“Cryptocurrencies really seem to be imploding. From $3 trillion to $1 trillion. Why should it stop at $1 trillion? Because there’s no real value.”
"How many companies could Sam Bankman-Fried save?" he added.
The remarks were in stark contrast to two months ago, when Cramer enthusiastically stated that he was a "believer" in Ethereum and that "you can easily get a 35-40% return on investment" in the near future.
This prediction came at a time when the price of Ethereum was around $3,000, and the price of Ethereum has fallen by 62% since then.
Cramer also took a stab at NFTs, questioning how much money would be invested in such a “bad” asset class:
“NFT, I mean, you look at these companies that you’ve never heard of, they collapse over the weekend and you say to yourself, oh my god, $600 million just went away. […] How much Bad asset. Sell you NFT."
In response to Cramer's suggestion, user accounts like "Inverse Cramer ETF," which tracks "Jim Cramer's stock recommendations so you can invest inversely," popped up on Twitter.
The account, which has garnered 62,800 followers so far, recently saw shares of Ford and Nike drop 25 percent and 7 percent, respectively, since Cramer recommended a purchase.
Cramer made his first bitcoin purchase in December 2020. During the bear market in June last year, Cramer said he sold all of his Bitcoin, saying the price "wouldn't go up for structural reasons." Four months later, the price of BTC surged to an all-time high of around $69,000.
Another recommendation from Cramer in August 2021 is also worth noting, when Cramer suggested buying Coinbase stock COIN because it was "cheap" at about $248. According to Yahoo Finance, COIN is priced at $55.41 at press time.