CNBC’s Jim Cramer called bitcoin’s meltdown ” Crypto Monday,” in what he fears is the first day of judgment in the digital currency market.
Speaking off-air to tech executives during his trip to San Francisco last week, Cramer said he felt Silicon Valley thinks crypto is a scam and its promoters have taken a lot of money. money to unsuspecting investors. The revelation is 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 get his money out of ether, the world’s second largest crypto, which fell 20%. He said he has basically paid off his initial investment.
Monday’s 17% plunge sent bitcoin below $23,000. This is a 66% drop from its all-time high in November. The world’s largest cryptocurrency is no stranger to so-called cryptocurrency winters that have seen eventual recoveries back to record highs. However, Cramer wondered if those he called “bitcoin maniacs” would spontaneously come to the cryptocurrency market to stem the bleeding as they have done in the past.
The plunge in bitcoin and the crypto market in general are not systemic risks but rather a “necessary cleanup of speculation,” Cramer said. His Charitable Trust, which is CNBC’s Investing Club portfolio, has no exposure to crypto or related stocks.