Bitcoin offices in Istanbul, Turkey, on May 11, 2022.
Umit Turhan Coskun/NurPhoto via Getty Images
CNBC’s Jim Cramer called Bitcoin’s collapse Crypto Monday, in what he fears is Day 1 of a reckoning in the digital currency market.
Speaking to tech executives during his trip to San Francisco last week, Cramer said he got the impression that Silicon Valley thought crypto was a scam and its promoters had taken a huge hit. money to unsuspecting investors. The revelation was just one of 15 things Cramer said he learned while spending time out West for the first time since the Covid pandemic began.
Cramer, who has put some of his own money into crypto in recent years, said he was able to pull his money out of Ether, the world’s second largest crypto, which was beating 20%. He said he had almost broken even on his initial investment.
Monday’s 17% drop sent bitcoin below $23,000. That’s a 66% drop from its all-time high in November. The world’s largest cryptocurrency is no stranger to so-called crypto winters that gave way to eventual record-breaking recoveries. However, Cramer wondered if those he called “bitco maniacs” were going to easily enter the crypto market to stop the bleeding like they have done in the past.
The pain is generalized.
- Crypto exchange Coinbase lost 13% on Monday.
- A rival crypto exchange, Binance, has temporarily suspended bitcoin withdrawals “due to a blocked transaction causing a backlog”.
- Crypto lender Celsius has suspended all account withdrawals and transfers, citing “extreme market conditions.”
- MicroStrategy, led by bitcoin evangelist Michael Saylor, whose company is heavily invested in the digital coin, lost 26%.
The fall in bitcoin and the crypto market as a whole are not systemic risks but rather a “necessary cleanup of speculation,” Cramer said. His Charitable Trust, which is CNBC’s Investment Club portfolio, has no exposure to crypto or crypto-related stocks.
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