Jim Cramer, an economist notorious for his erroneous forecasts, advised investors to sell all their crypto holdings amid the SEC storm today. However, the market managed to make a remarkable recovery despite the crisis.
Jim Cramer tells crypto investors to ‘buy’, market starts to rise
Jim Cramer, host of ‘Mad Money’ and a former stockbroker, drew parallels between the recent banking crisis and the perception of the crypto industry. He highlighted how hedge funds have shorted regional banks during the crisis, hurting bank shareholders and possibly reducing the supply of credit.
At this point, Cramer stated that cryptocurrencies are primarily “fraud”. He even called these scam projects “poppycock”. The former stockbroker recommends that those who invest in such projects sell their crypto and move on to safer investments such as Treasury bills.
Cramer’s views are supported by the SEC’s recent action against Binance and Coinbase. “I have no idea why anyone is still keeping the money with these guys,” Cramer says. He also underlined his concern, stating that nothing could get people out of the market faster than manipulation.
Jim Cramer’s approach to regulatory uncertainty
Meanwhile, Twitter users are betting on the Inverse Jim Cramer ETF (SJIM), which was launched in March. Many predicted that the product would reach ATH levels and mocked Cramer’s guidance.
Inverse Jim Cramer performed well in the first quarter of 2023, according to Seeking Alpha. It surpassed the S&P 500 index with a year-to-date return of 6.59%. But Cramer’s comments highlight the regulatory uncertainty surrounding the larger market in the wake of the SEC intervention. The regulator has filed a lawsuit against Coinbase and Binance for allegedly engaging in improper and unlicensed activities.
Binance executive warns Jim Cramer about his accusations
About the recent lawsuits, Cramer has been harshly tense with his criticisms of Binance. The CNBC host went so far as to label the exchange as fake. But he also implied that the Coinbase SEC lawsuit was somewhat biased when compared to the Binance lawsuit.
In other statements, Cramer made another comment on Binance’s situation in the case, to which Binance management has responded aggressively. The CNBC host is asked to back up his FTX comparison with evidence. Because Binance management will ‘reconsider’ the accusations later.
On Tuesday, Cramer harshly criticized the management of Binance and Coinbase in the context of back-to-back SEC lawsuits. Noting that investors should withdraw money from Binance, he also compared the exchange’s position with the falling crypto exchange FTX. Apparently, Binance executives didn’t like what he said. Patrick Hillmann, Binance’s Chief Communications Officer, warned Cramer of his crazy comparison:
Hey Jim Cramer, we will eventually reconsider the allegations you made on the air yesterday that we committed the same crimes that FTX is accused of. I hope you have proof of that.
Hey @JimCramer – We will eventually revisit your on-air claims yesterday that we are guilty of the same crimes that FTX is accused. I hope you have some evidence of that because Chairman Gensler very obviously and immediately distanced himself from that accusation.
— Patrick Hillmann (@PRHillmann) June 7, 2023
Today, Cramer continued his criticism of the crypto market as two of the leading exchanges were targeted in a row.
I've had it with Coinbase and don't get me started on Binance
— Jim Cramer (@jimcramer) June 7, 2023
cryptocoin.com As we reported, after Cramer’s statements, the crypto market recovered strongly earlier today. Cramer remained on the agenda with ‘reverse indicator’ headlines throughout the day.
