Mad Money Jim Cramer Says Fed Will Take Down Speculative Assets Like Bitcoin

Jim Crame is back at it again with another U-turn on his stance on cryptocurrency. He called bitcoin and altcoins speculative assets and warned individuals to refrain from investing in them.

In recent years, Cramer has shown a somewhat controversial view of the crypto sector. In 2021, he insisted on receiving his salary in bitcoin. However, after the big price correction, he abandoned those plans and sold almost all of his BTC holdings.

“Don’t Get Crypto”

In yet another change of heart, the host of CNBC’s “Mad Money” – Jim Cramer – issued a warning to investors to avoid diversifying their portfolios with cryptocurrencies. In his view, the US Federal Reserve is committed to bringing down speculative assets, and argues that digital currencies fit this bill:

“Look, Fed Chairman Jay Powell told us that we have to stop doing stupid things with our money… What matters is that we just have to get through it intact. Don’t get memed. Don’t get SPAC’d. Don’t encryption. And you’ll get through this thicket and find yourself in a much better time when we’re sufficiently oversold for a big bounce.”

Cramer believes that the Fed has the ability to wash out all projects that can be described as “gambling”. However, the institution may harm someone meaningful in the process as well, the American added.

Earlier this week, Bitfury’s CEO – Brian Brooks – also touched on the Fed and how its approach to tackling inflation is hurting bitcoin:

“We’ve talked about the idea that bitcoin is an inflation hedge. The more the market expects tough policy from the Fed, the more people believe that the Fed is going to take an aggressive stance, and that will tend to hurt Bitcoin.

His earlier thoughts

It’s safe to say that Cramer – is among the individuals who frequently change his vision of the digital asset industry, based largely on current prices.

Back in 2018, when bitcoin fell below $4,000, he described it as an “illegal currency.” Last spring, however, the property’s price skyrocketed to $65,000, and he vowed to receive his paycheck in it.

A few months later, the crypto sector went through a significant downturn after the Chinese crypto crash, and Cramer did a U-turn again, claiming that he cashed out almost all of his BTC. Last October, Cramer said his entry into the crypto market was “just gambling.” He went further and associated the industry with “the greater fool theory.”

In June, he contradicted himself, saying that Bitcoin and Ether have caught the attention of the wider community and “seem like the most legitimate.” As such, he recommended investors only interact with these two and never borrow money to join the market.