CNBC’s Jim Cramer on Monday told investors that they still have time to sell their cryptocurrency holdings.
“You can’t just beat yourself up and say, ‘hey, it’s too late to sell.’ The truth is, it’s never too late to sell an awful position, and that’s what you have if you own these so-called digital assets,” he said.
The collapse of FTX, the bankrupt cryptocurrency exchange that was worth $32 billion at its peak, has thrown the crypto space under intense scrutiny and spurred mounting losses in a market that has seen digital assets get pummeled by the Federal Reserve’s interest rate hikes.
Cramer, who has warned against staying in speculative assets while the Fed continues to tighten the economy, reiterated his argument and said that investors shouldn’t be fooled by some coins’ inflated market capitalization.
He added that he expects more marginal names including XRP, dogecoin, Cardano and Polygon to fall much further, possibly to zero.
“Tether, a so-called stablecoin that’s supposed to be kinda-sorta pegged to the dollar, still has a $65 billion market cap,” he said, adding, “There’s still a whole industry of crypto boosters trying desperately to keep all of these things up in the air — not too different from what happened with bad stocks during the dotcom collapse.”