Jim Cramer, the host of Mad Money, is pleading with crypto investors to take profits on any crypto gains in their portfolios. “I am pleading with you. “Don’t let it turn into a loss,” he stated emphatically, “I don’t want you to lose money.”
Jim Cramer, the anchor of CNBC’s Mad Money, stated on Monday that cryptocurrency investors should take profits on their crypto holdings if their portfolios had any gains. Cramer, a former hedge fund manager, co-founded Thestreet.com, a financial news and education website.
He said: “ 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. ”
Cramer cautioned that the problems of Evergrande, a large Chinese property developer, are likely to continue to weigh on crypto markets. Evergrande also has a presence in other industries, including healthcare and electric automobiles. The company’s overall liabilities exceed $300 billion, and it has warned investors that it may fail on its loans.
The Mad Money anchor revealed that his crypto concerns are currently focused on tether (USDT)). “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,” he said.
Cramer continued: “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.” He warned: “If tether collapses, 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.”
However, the Mad Money host stressed that cryptocurrencies had the potential to become “mainstream.” He expressed his thoughts as follows: “Right now, owning crypto is what’s known as a ‘crowded’ trade and I don’t want you to lose money if this space keeps getting hit by Evergrande’s contagion worries.”
Cramer suggested in August that investors invest up to 5% of their portfolios in bitcoin. He announced in June that he had sold his bitcoins and purchased ethereum, citing the fact that “it’s more of a money.”