Cramer says time to take crypto profits
After yesterday’s losses across global stock markets leading to much more substantial losses in the cryptocurrency market, today is either the first step to recovery, or we are in the eye of the hurricane. Tomorrow’s market opening in China could foretell what is to come.
It’s joked about in crypto circles, that when CNBC analysts tell you to do one thing, if you do the opposite, then history tells you that you will very probably be up on the money.
Jim Cramer has urged investors in the crypto market to take some profits.
In a CNBC video published yesterday, Cramer cited the risk and uncertainty around the Chinese property developer Evergrande. He saw cryptocurrencies as being vulnerable to further downside.
“I know the crypto-lovers never want to hear me say sell, but if you’ve got a big gain as I did, well, I’m begging you to. Don’t let it become a loss. Sell some, stay long the rest, then let’s wait and see if China changes its attitude toward an Evergrande bailout.”
The host of CNBC’s Mad Money said that his particular concern was with the Tether stablecoin, and the chance that some of the Tether backing might well be linked to Evergrande.
“The problem with tether is that it’s backed by various holdings and roughly half of those are commercial paper — short-term loans — and much of that is believed to be, but we don’t know, Chinese commercial paper,”
Evergrande does loom large over world markets. Besides being the second biggest property developer in China, the company operates a wide range of businesses, from health care to electric vehicles. Defaulting on its vast debts of 300 billion can have very large repercussions. Cramer acknowledged:
“Tether said they have no Evergrande exposure, but tons of Chinese businesses stand to get crushed by this fiasco, and they have Evergrande exposure, and that could spell real trouble if the dominoes fall here.”
Despite the extremely bad record of CNBC over the years, it does appear to be extremely good advice this time from Cramer. Taking some chips off the table may well be sound sense. Cramer spoke of his fears for Tether:
“If tether collapsed, well, then it’s going to gut the whole crypto ecosystem, so if you own crypto in any form and you’ve got big gains, I recommend taking something off the table.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Read more: https://www.cryptodaily.co.uk/2021/09/Cramer-time-to-take-crypto-profits
Text source: Crypto Daily™
