Mad Cash Jim Cramer is no stranger to the world of cryptocurrencies, he has been in the headlines numerous times for his views on cryptocurrency and his investments in it.
Cramer has previously stated that he had bitcoin and Ethereum assets. Cramer has also announced his plan to return to cryptocurrency after he sold. The host of Mad Money has made headlines yet again for his thoughts on cryptocurrency. Cramer, on the other hand, is advising cryptocurrency investors to liquidate their holdings.
Cramer expressed concern about the continuing Evergrande problem in China, which has harmed the crypto market due to Tether’s alleged ties to the Chinese property developer.
Cramer thinks the crisis will have a bigger impact on the bitcoin industry. As a result, it advises holders to sell their crypto to prevent huge losses. “I know crypto aficionados despise hearing me say sell, but if you’ve made a big gain as I did, I implore you to do so,” Cramer added.
Tether, which has the most trading pairs in the market, is expected to cause problems, according to the show’s host. If the $60 billion firm is caught in the crossfire of the Evergrande case, the entire cryptocurrency market would be dragged down with it.
“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,” Cramer said of this potential.
If the reports that the majority of Tether’s backings are in Chinese commercial documents, and in particular, from Evergrande, the third-largest cryptocurrency will most likely crash if it loses its backing.
This is why crypto investors, according to Cramer, ought to liquidate their holdings. If not all, at least a portion of it while they remain in their current roles for an extended period of time.
Cramer advised investors to sell and grab profits immediately before the market continues to decline. It’s worth noting that Tether’s possession of Evergrande’s commercial papers is irrelevant.
The collapse of a firm on the scale of Evergrande will undoubtedly have repercussions in the cryptocurrency market. Probably as a result of the financial markets’ reaction to Evergrande’s bankruptcy.
“If Tether fails, the entire crypto ecosystem will be destroyed. So, if you’ve won cryptocurrency in any manner and you’ve made a lot of money, I’d advise you to cash out.”
Cramer also stated that the bitcoin market is currently “crowded,” and that he does not want investors to lose money in the market as the Evergrande scenario develops.