Jim Cramer, a financial luminary known as the “Wall Street Madman,” advised investors to avoid investing in cryptocurrencies and other speculative assets, warning that “all speculative assets will be wiped out.”
CNBC’s “Mad Money” host Jim Cramer on Tuesday gave his opinion on the financial market landscape, urging investors to stay away from speculative assets, including cryptocurrencies. He warned that those assets will struggle as the Federal Reserve continues to take a tough stance on inflation.
According to Jim Cramer, the best interpretation of Fed Chairman Powell’s speech on Friday is that risk assets, including cryptocurrencies, should be dumped.
Fed Chairman Powell told us that our money should no longer be used for anything stupid. That was the focus of his Friday speech. He will continue to cause pain until we stop investing in risky assets.
He continued, “Of course, some good investment targets will be damaged in the process, but this decline will not end until all speculative assets are washed out.”
Jim Cramer bluntly stated that he no longer sees Bitcoin as a store of value or a hedge against inflation.
He added that speculative assets that investors should avoid include cryptocurrencies, SPAC stocks, meme stocks and meme coins, especially Dogecoin (DOGE), Shiba Inu (SHIB) and other popular cryptocurrencies such as Polkadot (DOT).
He also tweeted on Tuesday that the Fed was telling investors that they should sell cryptocurrencies, NFTs, IPOs and SPACs before they run out of savings.
The Fed is telling you to sell the cryptos and the nfts and the ipos and the SPACs before they take your life's savings. No more nonsense!!!
— Jim Cramer (@jimcramer) August 30, 2022
Jim Cramer was a supporter of Bitcoin in the past. He said in 2020 that “Bitcoin can not only appreciate in value, but also hedge against inflation”, so he wanted to try to invest 1% of his assets in Bitcoin and leave it to his children as a legacy, But less than a year later, it said that it had sold most of its bitcoin assets due to regulatory concerns.