Jim Cramer, host of the CNBC program Mad Money, says the SEC will turn to crypto firms that do not comply with the regulations. The legendary stockbroker, who expects the US regulator to “sweep everything”, is urging investors to “exit” the cryptocurrency market immediately.
Jim Cramer directs crypto investors to emergency exit
The legendary stockbroker is back with more warnings for crypto investors. Cramer is a former hedge fund manager who founded Thestreet.com, a financial news and literacy site. Following the joint statement on crypto risks by the Fed, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Currency Regulatory (OCC), Cramer said on CNBC on Wednesday:
I think these statements are just the beginning of what I’m looking for, namely the SEC, that will bring together all of the non-compliant [crypto firms].
cryptocoin.com As you follow, US prosecutors have started to sue some hedge funds. Citing John Stark, who has served as an attorney for the SEC’s Enforcement Division for more than 18 years, Cramer emphasizes that Stark “is now calling for a screening.” CNBC says in part of the broadcast:
He said the SEC was going to sweep everything, so I tell everyone: get rid of them.
“I urge the people involved in the ponzi scheme to collapse”
“I see a lot of people like John Stark think this is just a giant ponzi,” Cramer continued. He added that he expects former FTX CEO Sam Bankman-Fried (SBF) to be important to the SEC meeting:
I’m not looking for a crypto crash. I urge the people involved in the Ponzi scheme to collapse.
Despite the warning signs, Cramer states that people continue to invest in cryptocurrencies. In this regard, he continued to warn investors to withdraw their money from crypto whenever they can. Cramer used to invest in Bitcoin, Ethereum and NFTs, but last year he sold all of his crypto investments. As the Fed continues to tighten the economy, it advises investors to avoid investing in speculative markets, including crypto. Earlier this month, he advised investors to exit crypto, emphasizing that it is never too late to exit a “terrible position”. He also said that he would not touch crypto even after a million years.
Regarding why the Bitcoin price is so resilient at a high of $16,000, Cramer said, quoting SEC attorney John Stark, “Because it’s all deception.” The Mad Money server concluded that crypto prices are “supported by people who want to support them and that is all.”
How about Bitcoin (BTC)?
Current on-chain reports reveal that Bitcoin investors may face a tough year in 2023. This is because the negative sentiment continues to have an impact on BTC and the overall market. Specifically, CryptoQuant analyst Gigisulivan evaluated BTC’s Stock-to-Flow Return and concluded that the price of BTC could drop below $16,700 at some point in the current bear market. Some analysts predict that CPI data will be the catalyst for $19,000.
