Legendary stockbroker Jim Cramer claims crypto assets have no ‘true value’. From this, he says, crypto has a lot more room to fall. He also urges his followers to be extremely careful with Dogecoin (DOGE). Meanwhile, BofA noted a more than 50% drop in cryptocurrency usage.
“Crypto including Dogecoin has more room to fall”
Jim Cramer claims that the crypto asset class has ‘no real value’. In this direction, he attacked cryptocurrencies earlier today. cryptocoin.comAs you follow, the total value of the crypto market has dropped below 1 trillion dollars. Despite this, the famous stockbroker suggests that crypto has a lot more room to fall. During her last appearance on CNBC, she states:
Crypto seems to be really exploding. It went from $3 trillion to $1 trillion. Why stop at $1 trillion?
“The ‘immolation’ of crypto is part of the Fed’s victory”
Last week, the ‘Mad Money’ host stated that crypto has failed as a hedge against inflation. Jim Cramer pointed out that digital assets perform even worse than stocks. Moving from this, he described crypto as the ‘last bastion of speculation’.
The CNBC star hailed the Fed for making significant progress in taming inflation at the expense of high-risk assets like crypto. According to Cramer, the ‘immolation’ of crypto is part of the Fed’s victory over inflation. Without belittling the words, he described the crypto crash as the ‘mother of all misery’.
Cramer urged to be extremely careful with Dogecoin (DOGE)
Last month, Cramer predicted that the leading cryptocurrency would fall as low as $12,000. He also said that crypto should not be considered a safe investment last month. However, Cramer still sees Bitcoin and Ethereum as ‘legitimate cryptocurrencies’.
Meanwhile, Cramer said in January that he was convinced that meme coins are an unregistered security. Therefore, Cramer urged his followers to be extremely careful with Dogecoin (DOGE).
BofA sees massive drop in crypto users
Bank of America (BofA) recorded a more than 50% drop in usage, according to data published in its latest report. BofA says the number of customers using cryptocurrencies fell to less than 500,000 in May. For comparison, in November, it outstripped over one million active crypto users. The latest data underscore the deteriorating sentiment in the industry driven by sharply falling market prices.
BofA’s David Tinsley claims that the collapse of the Terra stablecoin has accelerated the market correction. Some analysts expect the leading cryptocurrency to come under pressure due to the Fed’s hawkish monetary policy aimed at curbing inflation.
Risk assets like bitcoin tend to underperform severely when the dollar rallies massively. Veteran trader Peter Brandt correctly noted that the US dollar was in the midst of a major upside breakout last week.
Meanwhile, unlike other US-based banking institutions, BofA has yet to keep up with crypto services. Finance CEO Brian T. Moynihan explained in a recent interview that he doesn’t feel like he’s missing out.
In May, the BofA research arm noted that Bitcoin failed to hedge inflation due to its high correlation with equities. He also concluded that Bitcoin cannot serve as a portfolio diversifier.
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