Jim Cramer, host of CNBC’s Mad Money, recommended that they sell to investors with earnings in their crypto portfolios, saying he believes digital currencies will face more challenges related to Chinese real estate developer Evergrande.
Cramer expressed his concerns about the Evergrande crisis still lingering in China, which has hurt the crypto market due to rumors of Tether’s ties to the Chinese real estate developer. Cramer believes that the potential of the crisis to affect the cryptocurrency market is quite high. As a result, it asks investors to sell their crypto to avoid big losses if this happens. Cramer, “I know crypto lovers don’t want to hear me say sell, but if you’ve made a big profit like I did, I beg you [satın]” said.
The host of the show claims that there are likely to be some issues with Tether, which has the most trading pairs in the market. According to Cramer, if the $60 billion company gets caught in the crossfire created by the Evergrande situation, it will drag the entire cryptocurrency market down with it.
If the rumors that the majority of Tether’s backing is on Chinese commercial papers, specifically Evergrande, turn out to be true, Evergrande’s impending bankruptcy will most likely cause the fourth-largest cryptocurrency to crash abruptly with no support. Cramer states that this is the reason why crypto investors need to sell their holdings.
“Don’t let it be a loss. Sell some, hold the rest long, then let’s see if China changes its mind on Evergrande bailout.”
Evergrande Is A Big Issue For Crypto, Even If It Is Independent Of Tether Connection
Cramer urges investors to sell and make a profit before the market suffers more. Although Tether is not affiliated with Evergrande, as a reflection of the collapse of an Evergrande-sized company, most likely the financial markets were directly affected by this bankruptcy; It is certain that it will cause ripple effects that will affect the crypto market as well.
“If Tether crashes, then it will destroy the entire crypto ecosystem. Therefore, if you have won in crypto in any form and have made significant gains, I suggest you take something off the table.”
Cramer also added that the cryptocurrency space is “overcrowded” at the moment and therefore, he does not want to see investors lose money in the market by being affected by the Evergrande situation.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.